GlobalSupplier - Daimler

South Africa 

Issue No. 4/ 2001 

GlobalSupplier 

An Extended Enterprise®-Magazine 

for DaimlerChrysler suppliers and associates 

More Than 

Just a Facelift 

A statement that applies to both the Actros MP II 

and its development process. For a report on model 

refinement full of surprises and new processes, be 

sure to see pages 4-5.

2 

Contents 

Cover Story 

e-Business 

Process 

Company 

News 

Business 

Project 

Awards 

News 

Global 

4 CV: Actros Model Refinment 

More than just a facelift 

6 Global e-Business Activities within GP&S 

Good Results 

10 GP&S:GPSIS/EBSC 

Suppliers Access Their Performance Data 

Through the Web 

13 New MEP Structure January 2002 

Chrysler Group honoured for best Minority 

Supplier Program 

14 Process for Supplier Warranty Reduction 

more Efficient 

South Africa 

16 e-Business supplier portal 

18 SMA Engineering opens new global plant 

High-quality pipes for the Mercedes- 

Benz C-class 

20 PPC workshop on customer supply chain 

21 Cost Planning teams visiting suppliers 

22 Empowering transport suppliers 

Black Economic Empowerment 

24 International Technology Award for 

Natural Fibre Project 

DCSA and DCAG wins prestigious 

worldwide award 

26 Suppliers win Jürgen Schrempp 

commendations 

27 DCSA wins President's award 

28 Tough year predicted for 2002 

Naamsa reports 

29 Spanish supplier to invest in EL 

30 Briefs 

0

Editorial 

Facing the New Year with Confidence 

1. 01. . . . . . . 2002 . . 2002 

As 2001 rapidly draws to a close, we 

find that even a brief look back at all 

that we have achieved together this year 

necessarily includes the effects of those 

terrible events on September 11. I’m sure 

that I speak for all of our employees 

and business partners when I say that 

the unspeakable brutality of this horrific 

attack has shocked us all to an extent 

exceeding even our worst fears. 

Many of our employees, suppliers and 

dealers have expressed their solidarity and 

generously offered their help. In support 

of their initiative and, at the same time, 

to demonstrate our own commitment to 

relieving the human suffering, Daimler- 

Chrysler has established a charitable relief 

fund to benefit the children of those who 

perished so cruelly on September 11. In 

particular, I would like to express 

my heartfelt gratitude to our suppliers, 

who have been especially forthcoming in 

their prompt response to our appeal for 

donations. 

To achieve the corporate goals set for the 

year now coming to an end, Daimler- 

Chrysler has continued to take consistent, 

proactive steps. 

In all areas and units of the Group, 

including, of course, a significant effort at 

Global Procurement and Supply, business 

processes are continually being optimised 

and streamlined on a global scale, with 

particular stress being placed on the everincreasing 

importance of e-Business. While 

doing so, we have had firm, energetic 

support from you, our supplier partners. I 

wish to express my sincere thanks for this 

action on our part. Despite all the abominations 

and adversities of recent months, 

we have, nevertheless, made significant 

progress in 2001 in setting up the world’s 

most effective supplier network. 

Although it is difficult to predict our 

performance in the coming year, the 

Group’s third quarter results do indicate 

that we are on the right path, also with 

regard to our restructuring at Chrysler. In 

2002, we shall move forward in the same 

consistent manner. You will find numerous 

examples of our activities in this latest 

issue of Global Supplier. In our lead story, 

you will find out many new and interesting 

facts about the current status of the 

model refinement for the Actros, the 

centrepiece of Mercedes-Benz Commercial 

Vehicle Division, which will be presented 

in the fall of next year at the IAA commercial-vehicle 

show. Working closely with 

supply partners, our engineers and stylists 

have turned some great ideas into trendsetting 

innovations. Go ahead and see 

3 

for yourself! Another example of our 

continuing improvements is the introduction 

of the External Balanced Scorecard, 

a tool which enables us to measure the 

performance of our supply partners in 

the critical areas of quality, systems 

costs, technology and supply in a clear, 

well-structured manner. Using it, supplier 

performance can be readily analysed and, 

if necessary, used as a basis for developing 

joint approaches for improvement. This 

system will permit even more open, 

balanced and thus far more effective communication 

with our supply partners. The 

establishment of a Singapore-based South 

Asian procurement office that is ready and 

willing to provide many forms of assistance 

and support, to our suppliers is another 

significant step in this direction. I urge 

our suppliers to take full advantage of this 

mutually beneficial opportunity. 

I wish all of you a pleasant, peaceful 

Christmas season and great success in 

the new year. In closing, I would like to 

once again remind you of our charitable 

endeavours and ask you to contribute to 

our newly established relief fund, whose 

account information is provided elsewhere 

in this issue. 

Gary C.Valade 

Executive Vice President, 

Global Procurement &Supply, 

DaimlerChrysler AG

4 

Global Cover Story 

Commercial Vehicles Actros Model Refinement 

More Than Just a Facelift 

About three years ago, the Commercial Vehicle division started a model 

refinement project for the Actros to update the truck series originally introduced 

in 1996. For the first time, this upgrade project has incorporated 

some new steps that have significantly revised the product development 

process and, at the same time, have had positive effects on the collaboration 

between DaimlerChrysler and its supply partners. 

At this point, we can let you in on 

some of what has already been accomplished: 

When the Actros MP II (“MP II” 

is the internal designation for the model 

refinement project) is finally presented to 

the public at next year’s IAA commercial-vehicle 

show in Hanover, those 

attending will see “an almost entirely 

new vehicle,” states Achim Hornung, 

head of Procurement Commercial Vehicles, 

Exterior, Area Support, referring to the 

vehicle’s multifaceted features which are 

as new as the implemented development 

process itself. “We applied this revamped 

process for the first time in the Actros 

refinement,” he reminisces. “The goal 

of the new approach was 

to involve our suppliers even earlier on 

in exercising their own responsibilities for 

component development.” 

A Far More Stringent Process. With the 

introduction of skeleton specifications, 

concept approvals and functional specifications 

during the design phase, the overall 

development process was tightened up 

considerably. “Sure, having to write a 

comprehensive document like a detailed 

functional spec can be very time-consuming,” 

Hornung concedes, “but in the long 

run it pays off in supporting product 

development.” As early as during the 

concept approval stage potential suppliers 

were already involved in contributing 

their competing ideas to the process. 

These proposals were then evaluated 

to determine which ones were most 

promising from both technological and 

economic standpoints. In addition to 

Procurement, above all Development, but 

also plant representatives from Logistics, 

Quality Assurance as well as from 

Production Planning and Cost Planning 

were involved in making these selections. 

After this phase, while being supported 

by DaimlerChrysler, the suppliers finally 

selected were expected to conduct “their 

own largely independent development 

work,” Hornung explains, adding that, 

“the extent to which we have consistently 

employed this approach in this model 

refinement project had never been 

attempted before.” 

Close Interdisciplinary Collaboration. 

In this process phase, the PIF (Permanent 

Interdisciplinary Function) team organization 

once again proved its worth. “It

was able to provide strong support for 

our partners’ development work because, 

in most cases, their representatives were 

actually sitting right at the table along 

with the members of the respective DC 

function team.” In addition, the integration 

of Customer Service and Sales into the 

overall project team promoted cross-functional 

collaboration and allowed greater 

consideration of market-related factors 

much earlier on in the development 

process than had ever been possible 

before. Extensive use of computer-supported 

testing produced great time savings 

in certain development steps, and, in fact, 

allowed some testing sequences and loops 

to be completely eliminated. 

Successful Shortening of Development 

Time. Applying the new methods and 

measures in the product development 

process resulted in, “substantial time 

savings in development time for the Actros 

MP II compared to previous projects,” 

Hornung reports. Beyond this, the introduction 

of a three-stage “try-out” phase starting 

in the middle of next year, followed 

by a prior, upstream “pre-try-out” phase 

(in which, as Hornung puts it, “series 

production processes will already be 

subjected to initial testing”) to be 

introduced by the end of the year, will 

allow even more time be cut out of the 

development schedule. It’s become quite 

clear just how many advantages there 

It’s almost all new: The MP 

II model refinement, strongly 

focused on the needs of the 

driver, has almost completely 

transformed the Actros cab 

interior (the photo shows the 

interior of the predecessor). 

Achim Hornung is optimistic: “The advantages 

of the new process and how 

it allows earlier integration of supply 

partners into development will definitely 

benefit the final product.” 

really are to the new, more stringent 

process and how well it allows earlier 

integration of supply partners into joint 

product development. “Some of our supply 

partners have already been involved in 

intensive development work for two to three 

years now. They were already there during 

the prototype phase and so are familiar 

with the whole process, which means that 

they know exactly where they stand.” These 

cooperative conditions give Hornung good 

reason to be optimistic: The best prerequisites 

have been created for the successful 

handling of a new series development, 

resulting in a quick switchover from the 

current Actros series right on into a 

relatively steep ramp-up phase of the new 

Actros MP II. 

An Almost Entirely 

New Actros 

The Actros MP II is full of surprises, ones that 

Hornung, quite understandably, can only hint 

at right now, not quite a year before the revised 

Actros is to be introduced. But he has revealed 

a few general things about it: the model refinement 

process has paid particular attention to 

the cab area, “which has undergone significant 

changes.” Aspects of living, sleeping and 

working were re-evaluated and put into proportion, 

while the interior and instrument layout 

were designed in an even more driver-friendly 

fashion. The vehicle exterior will have an improved 

appearance, better aerodynamics and 

will also offer some functional innovations. 

The powertrain section will now feature higherperformance 

engines coupled to a new rear 

axle and diagnostics facilities are undergoing 

considerable improvement. All Actros MP II 

refinements are being adapted and modified to 

reflect the specific requirements of the three 

product lines: 

long distance vehicles 

distribution vehicles 

construction industry vehicles, 

special vehicles. 

5

6 

Global e-Business 

Global e-Business Activities within GP&S 

Good Results 

Purchasing decisions establish long-term supplier relationships, directly 

determine product costs and have a significant impact on the level of quality 

and innovation of DaimlerChrysler products. DaimlerChrysler’s objective is 

to optimize the core tasks of purchasing using web-based technologies. 

In 2001, together with the purchasing divisions, e-Extended Enterprise as 

a global e-Business organisation within Global Procurement & Supply was 

able to successfully develop various e-Business tools. 

“We need the support and feedback from 

our suppliers in order to continually 

update and improve our e-Business tools 

and to install them successfully,” says 

Harold James Carleton, Director 

e-Extended Enterprise. “You cannot simply 

introduce e-Business systems from one day 

to the next. You have to have the courage 

to test new systems and to draw on the 

experiences of all parties involved in the 

process.” e-Business will change business 

processes considerably and expand communication 

and collaboration opportunities. 

Electronic exchange of documents with 

Supply Partners. The e-Business application 

eDocs has been in operation 

since September. Via the DaimlerChrysler 

supplier portal and the Internet, eDocs 

provides electronic purchase documents, 

* Materialeinkaufssystem = 

material procurement system 

namely inquiries, orders and sale 

agreements. Business partners can also 

send proposals and order or sales 

agreement confirmations via eDocs to the 

sales organisation. eDocs is fully integrated 

in the MES* procurement system, and 

will also display electronically internal 

procurement authorisations in the next 

realisation phase, thus facilitating a 

consistent workflow via the Internet and 

beyond corporate borders. 

With a volume of more than 500,000 

document shipments per year, the introduction 

of eDocs is expected to bring 

significant economic benefits. In addition 

to a substantial reduction in document 

flow-through times, a substantial decrease 

in administrative expenses is also 

expected. 

Initially, 11 pilot suppliers are working 

with eDocs in the first stage, which has just 

started. The functionality of eDocs will be 

further extended in the course of a further 

release next year. After that it will also 

be possible to send separate attachments 

(e.g. text specifications or drawings). It 

is planned that up to 20,000 business 

partners will be supplied through eDocs by 

the end of 2003. In a further development 

step, procurement documents are to be 

made available in an XML format; such 

documents may be directly transferred by 

the business partners to their order or 

materials management system. 

First global online bidding events a great 

success. In September, the purchasing 

organisations “Purchasing Services” and 

“Materials Purchasing for Passenger Cars” 

held the first global online bidding events. 

Within Purchasing Services, the demand 

for PCs and laptops from locations in

Germany, US, Brazil, and South Africa 

and the demand from the Mitsubishi 

Motor Corporation in Japan was jointly 

negotiated online. Using Covisint’s 

market place, well-known global computer 

manufacturers submitted bids from 

Europe and the US for a total of 16 

order packages. Particularly relevant for 

the success of the online bidding event 

was the excellent co-operation between the 

global procurement and IT departments 

as well as intensive communication with 

the suppliers during the planning and 

preparation phase. According to Ulf 

Nordmann, manager of 

purchasing for standard IT equipment, “the 

online bidding event (OBE) allowed us 

to negotiate transparently, efficiently, and 

highly competitively for the first time 

at such a complex level with regard to 

content and geographical location. Nevertheless, 

it was a challenge for our PIC 

team (Permanent International Commodity 

Team) and for the suppliers involved with 

regard to co-ordination, concentration, as 

well as commitment.” 

Materials Purchasing Passenger Cars 

negotiated engine components in an online 

bidding, together with colleagues from 

the purchasing locations for the brands 

Mercedes-Benz, Chrysler and Mitsubishi. 

Suppliers from three continents participated 

in the online bidding event. 

“Excellent proof for the international 

co-operation within Purchasing in our 

company”, says Pia Zimmermann, 

responsible for parts purchasing in 

Stuttgart and supervisor of the bidding 

event. 

Both Pia Zimmermann and Ulf Nordmann 

agree that preparing and co-ordinating 

this global event required much effort. In 

the end, the requirements of all parties 

involved must be taken into account. 

eShop und eDocs – 

two e-Business 

applications in GP&S. 

Even just coordinating the timing of this 

online bidding event so that partners 

from completely different time zones 

could participate simultaneously created a 

challenge. But the effort in the run-up 

to the event paid off. During normal 

purchasing negotiations, such a complex 

award process would have taken weeks 

because the individual production locations 

would have had to establish the general 

terms in individual negotiation talks with 

the suppliers. The online bidding events 

had results within just a few hours. Only 

through online bidding is it possible to 

reduce this process so substantially for 

suppliers bidding competitively and for 

the purchasing departments at Daimler- 

Chrysler. In both the above examples, 

online bidding proved effective not only as 

a purchasing tool, but also for bundling 

large purchasing volumes globally. 

Catalog Buying: Online Procurement. 

Office supplies, tools, IT components or 

machine spare parts – beginning next year, 

DaimlerChrysler employees will be able to 

order all of these via the Intranet. Following 

the positive experience that was the result 

of a catalog solution tested in Germany, 

the eShop system was developed this year 

and is fully integrated in the back-end 

systems. The electronic catalog in eShop 

has a comprehensive assortment of goods 

on offer from the non-production area, 

including detailed product descriptions and 

prices previously negotiated with Daimler- 

7 

Chrysler. The catalogs are prepared through 

Covisint on the basis of suppliers’ gross 

data and then transferred into the eShop 

catalog system. A defined group of users 

will be provided with access to eShop 

via the Intranet and from there they can 

send orders through Covisint directly to the 

supplier. 

eShop is the first global procurement 

solution to be implemented at Daimler- 

Chrysler. In the first quarter of the coming 

year, eShop will undergo a pilot phase in 

the German pilot plants of Sindelfingen and 

Wörth. The US plants, Chrysler Mack (II), 

Jefferson North Assembly Plant and CTC 

(Chrysler Technology Center) are going 

to test the catalog system beginning in 

December 2001. 

After the full completion of the launch, 

15,000 users will be able to procure several 

million items through eShop. (See also 

Global Supplier, Issue 02/2001, Page 8) 

Optimising Quality Processes through the 

Internet. The goal of the activities in the 

eQuality unit within procurement is to 

achieve web-based automation of all qualification 

and certification processes, from 

product development to series production 

and spare parts. To this end, e-Extended 

Enterprise is working closely with the 

internal quality departments in the 

company’s head offices and the production 

facilities. The web marketplace Powerway 

provides a new Advanced Quality Planning

8 

Mexico 

Global e-Business 

Web-EDI Catalog Buying BuyerChannel Presentation + 

Information exchange 

Global networking: e-Business 

tools contribute to continuously 

improved world-wide procurement 

and purchasing at GP&S. 

USA 

Brasil/ 

Sao Bernardo 

do Campo 

Know-how- 

Transfer 

Spain/ 

Vitoria 

Online Bidding 

Events 

(APQP) tool, which considerably 

accelerates the flow of information of 

quality-relevant data between Daimler- 

Chrysler and its business partners. 

It facilitates communication, supports 

process discipline and leads to strong 

program management benefits. In addition, 

it can serve as an early warning system 

for quality aspects and, thanks to timely 

exchange of information, can help avoid 

costly rework. Moreover, by using 

Powerway’s system, Internet-supported 

milestone controlling and parts approval 

is possible within the framework of 

web-based Supplier Quality Management. 

In the future Powerway will be provided 

as a standard tool for quality processes via 

Germany 

Austria/ 

Graz 

South Africa/ 

East London 

eChange- 

Management/ 

Fast Car 

Supply 

Network 

Collaboration 

Singapore 

eEnabled 

Procurement 

System 

the automotive marketplace Covisint. At the 

US locations six pilot projects have already 

been successfully carried out together with 

system suppliers such as Magna, Lear and 

JCI and their supply partners. As a result 

of these positive experiences the parts 

approval will only take place via Powerway 

in the USA from model year 2004. (See also 

Global Supplier European/North American 

Issue, 03/2001, page 24) 

In Germany, the Quality Database. 

Q-Channel is designed to provide quality 

documents company-wide. These include 

certifications, process audits, or 

information concerning defective parts. 

Passenger vehicle and commercial vehicle

Japan 

data will be entered for this purpose. All 

participating divisions will be able to use 

the Q-channel to call up routinely updated 

information. Another idea in the works is 

to enable suppliers to set up certificates 

directly in the database using the Daimler- 

Chrysler supplier portal. 

e-Supply – Global Networking throughout 

the Entire Supply Chain. Communication 

along the supply chain is a key factor for 

the efficiency of the individual partners. 

Today, information regarding material 

requirements becomes obsolete as it flows 

down the chain, leading to inefficiencies 

that could be avoided. EDI (Electronic 

Data Interchange), introduced into the 

automotive industry 20 years ago, still only 

covers part of the supplier network, as 

suppliers resist high initial investment and 

system integration issues. 

In the future, such obstacles will be significantly 

reduced by a web-based system, 

which enables universally transparent communication. 

Using this system, suppliers of 

all tiers will be able to access information 

relevant to them immediately and with 

a better level of quality. The aim of the 

“Supply Network Collaboration” model is 

to improve communication and planning 

for both suppliers and DaimlerChrysler. In 

addition to sharing real-time requirements, 

the system creates exception-based alerts to 

detect supply issues early and avoid them, 

thereby reducing the need for high reserve 

inventories. 

This model will enable DaimlerChrysler 

and the supplier network to exchange 

detailed and above all up-to-date 

information on requirement changes, 

capacity and restrictions in a secure 

internet environment. The first pilots in 

Auburn Hills (USA) and in Vitoria (Spain) 

have already produced positive results. 

Vitoria Supply Chain. In Vitoria, Daimler- 

Chrysler together with 22 suppliers tested a 

tool from software supplier Manugistics in 

May and June this year. The system supported 

supply chains in Vitoria for ventilators, 

fuel tanks and seating systems. The direct 

delivery suppliers and the suppliers from 

the second and third stages are linked in 

a Europe-wide network. For the fuel tank 

system of a Vito, assembled in Vitoria, a 

supplier in Germany for example produces 

the valves and a company in the UK 

produces the quick-release couplings. Both 

are made into a fuel tank line in Madrid. In 

the Spanish Burgos, however, the fuel tank 

line is assembled together with the other 

parts to form the finished fuel tank system. 

All those involved in this supply chain have 

access to the latest planned figures via 

the web. In this way, information regarding 

changes reached all those involved quickly 

and at the same time and the suppliers 

were able to adjust as quickly as possible to 

the changes in the capacity situations. 

9 

Sterling Heights Supplier Chain. The same 

tool is currently operating at the Sterling 

Heights Assembly plant in the USA, with a 

total of 10 suppliers from tier 1 to tier 4, 

who provide the interior door panels and 

seating systems. The suppliers involved 

in the pilot supply chain are located all 

over the North American continent. For the 

assembly of the seating systems in the 

US state of Michigan, the headrests are 

provided by a company situated in Canada, 

while the covers are, in turn, manufactured 

in Mexico. Here too, weekly planning data 

were communicated to all supply partners 

simultaneously using the tool, thereby 

enabling synchronous planning. 

The basic functions tested in the pilot runs 

were viewed positively by those involved. 

At present, enhancements to the solution 

are being developed in conjunction with 

suppliers and validated in line with 

industry standards.

10 

Global Process 

During the past several months DaimlerChrysler has developed 

a process to measure supplier’s performance, the External 

Balanced Scorecard (EBSC). This process facilitates the 

Extended Enterprise principle of open and fair communication 

between DaimlerChrysler and suppliers. Now – starting in 2002 

– DaimlerChrysler’s tier one suppliers will begin to access their 

performance data through the web. 

The starting point for the global performance 

measurement process are the four strategic goals 

of DaimlerChrysler’s Supplier Program Extended 

Enterprise: 

Quality: Achieve perfect quality based on the 

expectations of the customers. 

Systems Costs: Optimize systems costs. 

Technology: Ensure technology and innovation. 

Supply: Provide fast reliable and consistent supply. 

GP&S GPSIS/EBSC 

Suppliers Access Their Performance 

Data Through the Web 

The EBSC translates these value drivers into a set of 

measurable criteria for products and services. “While 

the optimization of Systems Costs is one of the major 

goals, it is not the only one”, said Lori Stevens, Daimler- 

Chrysler Senior Manager for Global Procurement & 

Supply Measurement & Reporting and responsible for 

the global implementation. “We are working with our 

supply network to optimize and balance Systems Costs 

with Quality, Technology and Supply.” 

Data owners, such as Global Procurement & Supply, 

Engineering, Quality and Controlling at Daimler- 

Chrysler locations worldwide feed the relevant data 

for each supplier into DaimlerChrysler’s Global 

Procurement and Supply Information System (GPSIS). 

GPSIS stores performance data like delivery times,

failure parts per million or warranty costs for each 

supplier. It summarizes the results for the four value 

drivers and compares the actual status with the goals 

that DaimlerChrysler and suppliers have agreed upon. 

The results are rendered into a Balanced Scorecard. 

From this data a bubble chart format is created 

which shows the actual performance of a supplier. 

This data summary serves as a basis for continuuos 

improvement. DaimlerChrysler and suppliers can for 

example discuss trends in performance over time, 

diagnose areas for improvement or identify whether 

improvement in one area was achieved at the expense 

of another. 

In the future, first tier suppliers will be able to access 

their Balanced Scorecard through the web. The next 

two pages show an overview of when and how. 

Mercedes-Benz Passenger Cars and Commercial 

Vehicle Suppliers “Our central goal is to utilize the 

EBSC in order to optimize our strategic discussions 

with our suppliers”, said Eberhard Gloger, Senior 

Manager for strategy in the Procurement Mercedes Benz 

Passenger Cars / smart organization. 

To simplify this process, the organization has tested 

the system together with a variety of suppliers with 

different delivery volumes. The feedback of Daimler- 

Chrysler employees and suppliers is now used for 

further enhancements of process and systems. 

Before getting access to the EBSC, each supplier will 

be contacted for training classes. 

Together, representatives of DaimlerChrysler and the 

suppliers will define concrete goals at the beginning 

of each year. They serve as a basis for the strategic 

discussion during the year. 

For more information please contact: 

Eberhard Gloger, Phone: +49-7031-90-88633 

eberhard.gloger@daimlerchrysler.com 

� 

Quality + Technology 

Systems Costs + Supply 

� 

The bubble chart tells the 

story: Transparent information 

on supplier performance 

is available at a glance. 

Fulfillment 

Quality 

Non-Production Material Suppliers, 

Mercedes-Benz “This instrument is a big step in the 

cooperation between purchasing, supplier management 

and suppliers and will therefore open new vistas in 

the automotive industry”, said Ingo Kaufmann, Project 

Manager EBSC in Purchasing Services. All non-production 

material suppliers currently involved in the EBSC 

process are asserting their commitment by signing their 

EBSC – together with the responsible DaimlerChrysler 

buyer. The EBSC joins together a circle of responsibility, 

in which DaimlerChrysler takes over the role of a coach. 

The initial point of this circle is the internal Daimler- 

Chrysler customer, such as a project leader or member 

of the planning department. This customer evaluates 

the performance of a supplier at the completion of a 

project. The responsible buyer uses the results of the 

evaluation to develop the supplier’s EBSC. Both the 

internal customer and the buyer can then evaluate the 

supplier’s performance and ability to achieve fulfillment 

rates on new projects. 

� 

100 

Systems 

Costs 

Technology 

11 

Supply

12 

All suppliers have direct online 

access to their performance figures. 

Global Process 

Ingo Kaufmann: “All parties involved see the EBSC 

as an instrument to intensify communication and to 

develop a partnership based on clear goals.” 


Ingo Kaufmann, Phone: +49-711-17-59430 

ingo.kaufmann@daimlerchrysler.com 

Production Material Suppliers Chrysler Group: 

Chrysler Group Production Material Suppliers will have 

access to view their performance measurements during 

the first quarter, 2002. All suppliers will be notified 

when online training materials are available. 

Following training, suppliers will be able to access 

their External Balanced Scorecard (EBSC) and the 

associated Sourcing Martix (Bubble Chart) through the 

Extended Enterprise Network (EEN). Each supplier 

must have a DaimlerChrysler supplier identification 

number (S-ID) to access information through the EEN. 

Denise Bondy, Senior Manager NAO Executive Staff 

and Supplier Support, is responsible for the roll-out 

within the Chrysler Group: “Our recommendation 

is that performance data be shared and discussed 

among the DaimlerChrysler buyer, quality and delivery 

specialists, internal customers and the supplier. 

Regular feedback sessions between our internal and 

external partners are highly encouraged.” 

GP&S GPSIS/EBSC 

Non-Production Material Suppliers Chrysler 

Group: Like other DaimlerChrysler purchasing organizations, 

Auburn Hills Non-Production Procurement will 

be using the EBSC process to evaluate its supplier 

performance in the future. Starting in January the 

buyers will be reviewing expected performance and 

setting balanced scorecard targets for the key NPM 

suppliers (approx. 600). The primary data input for the 

NPM EBSC will be coming from internal user customers 

that will be asked to evaluate supplier performance 

through a new twelve question web-based electronic 

supplier evaluation survey. Along with this customer 

input will be performance measures on Material 

Cost Management (MCM) and Diversity Supplier 

Development. 

For now, background information and status regarding 

web access is available on the web at 

extranet.daimlerchrysler.com. 


Denise Bondy, Phone: +01-248-576-2742 

DMB17@daimlerchrysler.com

New MEP Structure 

January 2002 

MEP/1 

Powertrain, 

Alliance 

Ola Källenius 

MEP/2 

Electrics/ 

Electronics 

Harald Brunini 

Global Company 

MEP/3 

Interior 

Christoph Seyfarth 

In January 2002, there will be a reorganization 

of the purchasing areas in Materials 

Purchasing Passenger Cars Division 

Mercedes-Benz/smart (MEP). Electrics/ 

Electronics and Chassis, up to now under 

common management, will be separated 

into two independently managed areas. 

The creation of a new management 

area solely responsible for electrics and 

electronics is a necessary response to the 

dynamics and flexibility inherent in the 

electronics and automotive industries. 

Dividing MEP into five operative purchasing 

MEP/4 

Exterior 

Robert Schott 

Chrysler Group honored 

for best Minority Supplier 

Program 

MEP 

Johannes 

Rudnitzki 

MEP/5 

Chassis 

Frank Deiss 

For the second year in a row, The Michigan Minority 

Business Development Council (MMBDC) recognized 

DaimlerChrysler as having the best minority supplier 

program in the state of Michigan. The MMBDC also 

presented the President’s Recognition Award and the 

best advocate in Michigan to Jethro Joseph, Senior 

Manager of Diversity Supplier Development (DSD), 

and Robin Hammer, DSD, respectively. 

These honors were bestowed on the Chrysler Group’s 

MEP-Organisation 

MEP/S 

Strategy/ 

Controlling 

Dr. Gerd 

Scheich 

areas will enable it to more successfully 

apply the philosophy of ’one face to the 

supplier’ through an improved key-account 

purchasing system. This new approach will 

better reflect the cooperative spirit of the 

Extended Enterprise® program. 

MCC/smart 

Reiner Genes 

Procurement & Supply for creating a world-class 

mentoring program, a tier-2 program, and other 

initiatives that focus on achieving a supply base 

reflective of the customer base. 

MBUSI 

Joachim 

Tosstorff 

13

14 

Global News 

Process for Supplier Warranty 

Reduction more Efficient 

Chrysler’s warranty system has been 

modified to create a more efficient warranty 

process for fasteners. 

Previously, dealers could only designate 

entire components as the problem, which 

caused suppliers to perform detailed 

analysis of an entire component, when in 

reality a fastener was determined as the 

root cause. This year, the process has 

changed. 

The Supplier Warranty Reduction Team 

of the Chrysler Group has created a 

coding system that enables dealers to more 

accurately pinpoint the causes of problems 

within components, such as fasteners. 

Chrysler’s Supplier Warranty Team proved 

that fasteners did, at times, play a role in 

what was believed to be the failure of some 

warranted components. This new system 

also allows dealers to directly transmit 

detailed reports about the parts of a 

component to the effected Chrysler 

purchasing departments and suppliers. 

Renee Stirrett, Chrysler Supplier Warranty 

Reduction Team: “This warranty system will 

increase efficiency and improve the effectiveness 

of warranty claims.” 

For more information on Supplier 

Warranty contact 

Renee Stirrett 

Phone +01-248-451-5614 

rss19@daimlerchrysler.com

The Environment Wins with Innovative Ideas from 

DaimlerChrysler Employees and Suppliers 

By saving more than $100 million, 

eliminating more than 60 million pounds 

of waste and reducing emissions, Daimler- 

Chrysler employees are demonstrating that 

environmental responsibility makes good 

business sense. These cost savings and 

benefits are quantified by 10 employee 

teams who were honored by DaimlerChrysler 

with this year’s Environmental 

Leadership Awards (ELA). The ELA is an 

annual competition sponsored by Daimler- 

Chrysler for its employees and supplier 

partners. The 10 finalists were chosen from 

108 entries representing eight countries 

around the world. The awards recognize 

and reward employees and suppliers for 

innovative ideas that achieve one of 

the fundamental corporate objectives of 

DaimlerChrysler – environmental responsibility. 

Karmann builds Crossfire 

Following are short descriptions of the five 

winning entrants: 

The Chrysler Group worked with 

1 

Gage Products and Valvoline to 

develop a process to redistill and then 

use recycled engine coolant at its 11 U.S. 

and Canadian assembly plants. 

In Sindelfingen, Germany, employees 

2 

and the Council for Scientific and 

Industrial Research (a South African 

research council) developed a process to 

use sisal fibers locally found in South 

Africa to produce the fiber-reinforced rear 

shelves for the Mercedes C-Class built in 

South Africa. 

Over an eight year period of time, 

3 

the Chrysler Group, PPG Industries 

and BASF Coatings Division made 

significant changes to paint materials 

and processes. These changes reduced 

the emissions of hazardous air pollutants, 

volatile organic compounds, toxic release 

inventory substances and hazardous waste. 

4 

15 

The Chrysler Group created a solvent 

management partnership along with 

its supply partners to create a 

group-wide process to manage solvents and 

cleaners in the paint shops of all 11 U.S. 

and Canadian assembly plants. 

5 

In partnership with suppliers, the 

World Bank and the United Nations 

Development Programs/Global 

Environment Facility, DaimlerChrysler 

developed a clean air initiative in Brazil. 

This project involved two initiatives, the 

first being fuel cell buses for urban 

transportation in Latin American cities. 

The second was a program that focused 

on reversing the deterioration of 

urban air quality resulting from rapid 

urbanization, increased vehicle transportation 

and industrial production. 

DaimlerChrysler will produce the Chrysler 

Crossfire in Osnabrück together with 

Karmann GmbH. Only 18 months after the 

production decision, the company plans 

to introduce the vehicle to the market 

as early as 2003. The Crossfire was well 

received at the Detroit Auto Show and 

has been named the best concept study 

at various auto shows. Karmann, which 

can look back on 100 years of production 

experience, has been a long-term partner 

of DaimlerChrysler and is currently 

producing the Mercedes-Benz CLK Cabrio 

as well as the CLK Coupé.

16 

South Africa Business 

e-Business 

supplier portal 

One of the most significant steps 

in DCSA’s Procurement environment 

in 2002 will be the launch of 

a Supplier Portal on the Internet. 

Henry Freudenberger of IT Systems 

and Processes in Business 

Excellence, outlines what will 

happen. 

The portal will be a milestone within 

the Extended Enterprise Strategy, which 

will strengthen the relationship between 

supplier partners and DCSA. As DCSA 

puts great emphasis on e-Business and its 

supplier relations, the supplier portal is a 

development born out of that commitment. 

“From the company’s point of view 

the most essential goals concerning the 

Supplier Portal are first to offer a central 

point of entry to our current and potential 

suppliers and accordingly have one face to 

suppliers,” says Freudenberger. 

Completely aligned with Global 

Procurement & Supply, the Supplier Portal 

will provide general and specific key 

information. 

Numerous processes and actions based on 

SAP will take place on the Portal. On the 

one hand, suppliers will be able to access 

the required information and on the other 

hand, actual interactive workflows of the 

Procurement environment will be available 

online. 

Information and Interaction. Some of the 

Supplier Portal features are as follows: 

� Procurement documents, e.g. letter of 

intent, quality and purchasing agreements; 

� Catalogue Buying (Non Production 

Purchasing & Services); 

� External Balance Scorecard results; 

� DBL and DIN norms;

� Web-enabled industrialization process 

including engineering changes; 

� Warranty claim issues; 

� Standard timelines for projects and 

actions; 

� Supplier Application; 

� Supplier self-service (update own data); 

� News and events, e.g. BEE and OEM 

activities; and 

� Downloadable technical drawings. 

The benefits. The participation of South 

Africa’s most effective supplier network 

and especially the launch of the Supplier 

Portal will provide great benefits. 

It will allow easy access to all the required 

information in real-time and will also 

provide paperless online procedures and 

paperless documentation. 

“Also the communication between DCSA 

and the suppliers will be faster, more 

Business 

transparent and therefore closer. 

All processes that will take place on the 

Supplier Portal were re-engineered and 

put on SAP. This will lead to a more 

streamlined, faster and in the end a more 

efficient industrialization workflow,” says 

Freudenberger. 

In addition, he points out the synergy 

between SAP-based processes and their 

utilisation on the Supplier Portal will be 

advantageous for the suppliers and DCSA. 

“The Portal and the Processes behind it 

will reduce overheads and in the long run 

provide significant cost savings,” he says. 

The Project “Supplier Portal”. The most 

efficient way to run such a complex project 

was to create a cross-functional project 

team. 

This team comprises specialists from 

Purchasing, Engineering, Logistics and 

17 

Quality Assurance and is managed by 

Procurement & Export. 

Other functional areas within DCSA and 

our supplier partners will be involved in 

the Supplier Portal project. 

At this point the participating crossfunctional 

teams identify their specific 

requirements and create detailed process 

documentations concerning hard- and 

software and will start programming the 

Supplier Portal and its applications in the 

first quarter of 2002. 

After several quality gates testing, DCSA 

expects the Supplier Portal to go live in 

August 2002. 

More information on the Supplier Portal 

will be available in the next edition of 

Global Supplier. 

Henry Freudenberger

18 


SMA Engineering opens EL plant 

Pure piping 

AIRCONDITIONING and heating pipe manufacturers, SMA Engineering, have just 

opened a new plant in East London to supply their high-quality pipes for the 

Mercedes-Benz C-class, and scooped an additional bonus by winning an order for 

pipes for the new Mercedes-Benz E-class. 

SMA’s Managing Director, Walter Schick, said 

the company’s Backnang plant in Baden-Wurttemberg 

near Stuttgart supplied air-conditioning 

and heating pipes to Mercedes-Benz in Germany. 

When DaimlerChrysler decided to manufacture 

the W203 in South Africa, SMA was invited to 

South Africa to see if they could establish a plant 

in East London. 

The initial investment of R15,4-million to 

renovate an existing building, buy new 

equipment and train staff increased to 

R27-million in October 2000 when the company 

decided to build a custom-built plant. Of that 

amount, R12-million was spent on the site and 

the building, and R15-million on equipment. 

“I am pleased to announce that today we have 

received new orders to supply the new W211 

E-class which we will be exporting from this 

plant,” he said. 

Indus investment. An international listed 

company, Indus, which bought a majority shareholding 

in SMA Automotive in Backnang last 

year, fully supported the partnership with 

DaimlerChrysler as well as the need to locate the 

plant in East London. 

Dr Winfried Kill, Chief Executive of Indus 

Holding AG, said he was deeply impressed with 

what had been achieved since January when the 

establishment of the plant was first discussed. 

“It is unbelievable what has been established in 

such a short period,” he said. 

Indus, based near Cologne, has an investment 

policy to buy majority shares of small and 

medium companies that produce capital goods. 

“At present we have majority shares in 35 

companies, each one operating in a specialist 

field without any connection between them. 

Each maintains its own independence and 

flexibility”, said Dr Kill. 

“In 2001 we expect Indus Holding to turnover 

DM1,26-billion. The companies in our portfolio 

have 4 000 employees and in the last five years 

we have had an average compounded growth rate 

of 20%.” 

Highest quality. SMA has earned the highest 

quality standard available for the automobile 

industry - the new ISO/TS 16949, which brings 

together the standards of the European VDA6 

system and the American Quality Standards 

system. 

Senior President: Audit of the German-based 

certifying authority, International Cert, Armin 

Obstbaum, said the certification was positive 

proof that South Africa could be a base for auto 

suppliers capable and competitive enough to be 

global players. 

“This is the result of good organisation and 

teamwork within the organisation at all levels,” 

Obstbaum said. 

He praised SMA’s General Manager, Stephen van

Guests at the opening of the 

new SMA Engineering plant in East 

London are shown around by the 

General Manager, Stephen van 

Niekerk. 

Niekerk, for proving to be an 

excellent coach. 

“Continuous improvement 

processes, a modern 

environment and way of 

thinking were important 

aspects that have been taken 

into account.” 

Example of Extended 

Enterprise. DCSA’s Manager 

for Non-Production Purchasing 

and Services, Jos van Dyk, said 

the announcement by Daimler- 

Chrysler that the Mercedes- 

Benz W203 C-class would be 

manufactured in East London 

for world markets was met 

with some doubts among major 

component manufacturers in 

Europe. 

“In this context, it was a 

surprise to receive a phone 

call from Mr Schick, clearly 

committed to supporting our 

programme. 

“He scheduled a short visit 

to find out for himself. At 

that stage he wasn’t sure if 

he should engage in a joint 

venture with another company 

or extend his German factory to 

Business 

East London,” Van Dyk said. 

Buying a house in a different 

country is not easy - starting 

a new factory on a different 

continent “is a different story”, 

is how he put it. 

Van Dyk took Schick on a 

tour of East London and Port 

Elizabeth, and a week later, 

Schick called saying he had 

bought premises, and was 

converting them into an SMA 

factory. 

The plant was started in 

February 2000 with seven 

employees to supply the W203 

line. 

“Today he has a staff 

complement of 90. Not only 

has the staff grown, but the 

factory has been extended from 

a small beginning to this new 

3000 square metres state of 

the art factory, which achieved 

the ISO 9001 certification in 

August. All manufacturing is 

done to DaimlerChrysler and 

international standards,” said 

Van Dyk. 

He added that SMA had shown 

itself to be committed, 

innovative and globally 

19 

competitive. 

“DCSA is proud to be 

associated with SMA and our 

partnership is a leading 

example of our Extended 

Enterprise philosophy. With the 

basics now in place, we see 

unlimited potential for SMA 

to market themselves to other 

Original Equipment Manufacturers 

in SA. DCSA will give its 

support whenever possible in 

the marketing process via the 

automotive cluster,” he said. 

SMA’s Managing Director, 

Walter Schick.

20 


PPC workshop 

on customer 

supply chain 

Customer supply chain optimisation. Another major step for DCSA to become 

more competitive in the world market has been taken with plans to meet sales 

demand by reducing leadtime on the W203 from three to two months. 

Manager of Production Planning 

and Control (PPC) in the Logistics 

Division, Otto Wulff, said a target 

date of September 2003 has been set 

for implementation. 

“As a South African company we have 

to become more flexible to compete 

in the world market,” Wulff said. 

He said the reduced leadtime would 

mean the quality of orders received 

from customers would be far higher, 

and it would mean the company 

would gain the ability to react to 

changes in the market far quicker 

which would result in an overall 

reduction in finished job inventories. 

Sketching the background, Wulff 

said that when DCSA received the 

go-ahead to produce the right-hand 

drive W203, the company had 

defined a leadtime of three months 

between receipt of the order from 

sales in Germany and signing the 

unit out of final inspection. 

Excessive leadtime. “At the time they 

were not happy with the long period 

and we therefore started working on 

a project to effectively reduce the 

leadtime by one month. 

“If we look at the current situation, 

the German plants have a one 

month leadtime and we have three 

months, and it was felt that this was 

excessive. 

“They said the maximum transport 

time for material between Germany 

and South Africa is three weeks and 

one could assume another week for 

packing. They argued the leadtime 

should not be longer than two 

months,” Wulff said. 

The outcome was a three day 

workshop at the East London plant in 

November to resolve the differences. 

Participants comprised a core task 

team from Germany and South 

Africa. 

“Having gone through the workshop 

we believe it is possible to meet sales 

demand for a reduction in leadtime 

and we have set a target date of 

September 2003 to institute it,” Wulff 

said. 

Greater flexibility. 

The main benefits of a shortened 

leadtime are: 

* higher flexibility in programme 

planning; 

* uniform sales processes; 

* easier introduction of new model 

years; 

* being prepared for order shortages 

Otto Wulff … becoming more flexible. 

during the course of the life cycle; 

and 

* improved value of the right 

hand drive model in the markets 

in terms of customer value, 

competitive advantage and more 

uniform leadtimes. 

The current sales-to-plant leadtime 

caused several problems for the 

markets, including: 

* customers waiting at least five 

months for custom-built cars; 

* unacceptable leadtime differences 

to other models; 

* competitors had shorter leadtimes; 

* model year features were usually 

ordered with a delay because 

customers tended to buy only “what 

they see”; and 

* sales could not respond to 

short-term changes in market 

demand.

Business 

Simon 

Egeler 

Guideman 

Mbinyashe 

Cost Planning teams 

visiting suppliers 

Several major suppliers have been 

visited and 17 continuous 

improvement workshops have been 

hosted by the Cost Planning 

Specialists from Business 

Excellence Department within the 

Procurement and Export Division of 

DCSA in East London. 

Cost planning specialists in the 

cross-functional Business Excellence 

Department, Henrik Fricke and Simon 

Egeler, as well as supplier management 

specialist Guideman Mbinyashe, 

outlined the programme which is 

geared to focus on cost drivers and 

reducing costs by optimising processes. 

Thirteen workshops, which usually last 

between two to five days, have been 

held with W203 suppliers Venture, JCI, 

Behr Climate Control and R.G. Brose 

among others as well as with Colt 

suppliers like August Laepple. 

“We are trying to identify the areas 

for improvement together with our 

suppliers,” Fricke said. 

Egeler said the idea was to implement 

open-book cost calculations based on 

the DCAG methodology so that SA 

becomes globally aligned. This will 

enable an easy interface with the 

German cost planning division. The 

goal is to achieve a common understanding 

and get more people to have a 

general idea of the whole process. 

“The message to suppliers is that 

the success of the cost planning 

objectives will be determined by the 

level of co-operation we get from them,” 

Mbinyashe said. 

The challenge ahead is to reduce 

the continuously increasing cost gap 

between DCAG and DCSA. 

“The rand is a concern and that means 

we have to localise more and suppliers 

will need to implement more product 

diversification. We have lower volumes 

compared to Europe and Japan, with a 

higher inflation rate. In addition to this 

is the task of aligning some suppliers' 

mindset with DCSA. They talk about 

prices and we talk about costs,” Fricke 

said. 

Finding a win-win solution. The main 

challenge and means of addressing 

these problems is through open book 

cost calculation trying to get transparency 

in order to compare SA/German 

benchmark costs and to see where 

areas of improvement can be made. 

Egeler said the workshops focus on 

open book calculations, a common 

calculation base and bottom-up calculations 

to set up a target price as well 

as looking at the production line and 

making action plans. 

He said the common calculation base 

helps in Vendor Price Negotiations 

(VPN) as the detailed breakdown 

enables proper negotiations to take 

place. 

“We also train DCSA buyers in our 

calculation methods and have created 

a training manual for them to assist 

suppliers in terms of costing,” Egeler 

Henrik 

Fricke 

21 

said. 

Fricke said this was in order to have 

a common base and to ensure likewise 

that full understanding is achieved. 

Their main task is to provide support 

services to the buyers. 

He further said that DCSA gets support 

from the German cost planning division 

as they are the Part experts. 

Mbinyashe said they are currently busy 

collecting information on general cost 

drivers from suppliers. 

“We need to obtain detailed information 

from suppliers. Getting the information 

in advance helps when preparing for 

VPNs. This information is highly confidential 

and will only be used by cost 

planners.” Mbinyashe emphasized. 

Egeler said the exercise was not about 

cutting profit, but rather helping the 

suppliers and in the process achieve a 

win-win situation. 

“We assist the suppliers in identifying 

the deficiencies and in how to save 

costs in their own plants and this 

enables them to achieve high levels 

of competitiveness more especially if 

they want to become global suppliers,” 

Egeler said. 

Fricke said their role is to help and 

recommend solutions, and suppliers 

should try to see this assistance as an 

opportunity rather than a threat. 

Ten suppliers will be visited in 2002.

22 

South Africa Project 

Divisional Manager for Mercedes-Benz Commercial Vehicles, Dr Jan 

Lourens (left) congratulates Charles Madondo on becoming the proud 

owner-driver of a new Actros-driven autocarrier rig, with Motor Vehicle 

Carrier (MVC) directors Liam Hickey and Andy Kamffer. 

A key part of rebuilding South 

Africa’s post-apartheid economy 

has been to economically empower 

South Africans who were 

prevented by apartheid laws from 

setting up economically viable and 

competitive businesses in the past. 

Recently, DaimlerChrysler South Africa 

became a partner in an unusual 

empowerment project in vehicle transportation. 

The project involved handing over 

ownership of 11 new motor vehicle 

carriers, worth about R1,4-million each, to 

their drivers, who all come from previously 

disadvantaged backgrounds. 

The project combined the resources of 

DaimlerChrysler Services, DCSA’s Mercedes-Benz 

Commercial Vehicle Division, 

McCarthy Truck Centre, a transport 

management company, Motor Vehicle 

Carriers (MVC), Auto Carriers, who 

transport most of DCSA’s vehicles, and 

French trailer manufacturer, Lohr. 

The 11 carriers consisted of Mercedes-Benz 

Actros 2535 L 6x2 trucks pulling 

customised Lohr auto-carry trailers. 

The R15-million deal is a significant Black 

Economic Empowerment (BEE) project that 

will see the drivers starting their own 

viable businesses, with the potential 

for growth. Infact, for two of them, 

Stephen Jones and Charles Madondo, their 

businesses are showing signs of growth 

already -- they were taking delivery of their 

second vehicles. 

Empowering 

Transport 

Suppliers 

Real empowerment. BEE is an integral 

part of DaimlerChrysler’s supplier 

development strategy in South Africa, and 

the policy recognises and regards the 

previously disadvantaged black business 

sector as partners in economic prosperity. 

DCSA’s policy further states that the BEE 

of its suppliers will give opportunities 

to the entrepreneurial talent that exists 

in the disadvantaged communities, which 

will result in the equitable redistribution of 

business opportunities. 

It is the same values that have driven Auto 

Carrier Transport to embrace BEE. 

Managing Director of Auto Carriers, David 

Taylor, wants to put right the wrongs of the 

past, but also believes strongly that that 

empowerment projects must add real value 

by improving efficiencies and increasing 

knowledge and skills. 

“Simply adding a couple of black directors 

to a company’s board, or giving a company 

an African-sounding name, does not add 

up to real empowerment”, says Taylor, 

quickly adding that some genuine BEE 

schemes have failed because they had 

not been managed properly or adequately 

financed. 

Taylor said Auto Carriers decided some 

years ago to subcontract vehicles in its 

transport fleet to entrepreneurs to boost 

black empowerment and the new rigs will 

more than double the number of owner 

drivers in their fleet, to account for about 

10% of the company’s turnover. 

“We want these entrepreneurs to become 

business people in their own right and 

build capital. For this reason, we will 

increase the percentage rate of owner-drivers 

in the future,” he said. 

The owner-drivers will be subcontracted to 

transport vehicles by Auto Carriers. 

Getting the right people. A project like 

this can only be effective if people with 

the right qualities have been recruited, particularly 

if the business involves driving 

a R1,4-million rig carrying a load worth 

double that amount over difficult roads and 

long distances. Drivers also have to know 

how to load and unload their valuable 

cargoes properly without the smallest 

scratch. 

This was where MVC became involved. 

MVC owner, Liam Hickey, had been the 

transport manager for a major oil company 

and knew the industry very well. He 

also recognised the importance of good 

recruitment and training if BEE in 

transport was to be realised. Together with 

Andy Kamffer, he founded MVC, which 

specialises in owner-driver management, 

as well as the selection and training of 

prospective owner-drivers. 

“Liam provides the support needed to 

run the business well,” Taylor explains. 

“Although the owner-drivers start off as a 

small business, but as they grow bigger 

over time, they have to add value to our 

business as well. They must also be given 

the chance to perform and be rewarded.” 

Auto Carriers guarantees a minimum 

distance for the owner-drivers to cover

their fixed costs, and to share benefits if 

they excel.” 

Making the deal work. DCSA’s Commercial 

Vehicle Division handled the logistics to get 

the vehicles built, approved, shipped and 

prepared for final delivery, while Daimler- 

Chrysler Services arranged the finance for 

the owner-drivers to buy the rigs. 

Final preparation was handled by 

McCarthy Truck Centre in Cape Town, 

which will also manage all 

scheduled maintenance according to the 

service contract as well as servicing the 

trailers to Lohr’s specifications. 

Lohr, the leading European manufacturer 

of autocarry trailers, customised the 

trailers for South African conditions. In 

order to comply with South African law, the 

trailers had to be certified by the South 

African Bureau of Standards (SABS). 

Auto Carriers first involvement with BEE 

came about when Portnet was looking 

for tenders to handle the vehicles being 

loaded on and off the ships using the East 

London car terminal. They then entered 

into a partnership with entrepreneur and 

a long-time associate, Caiphus Khabana, 

owner of 5 Star Road Transport. 

Khabana is one of South Africa’s more 

unusual businessmen. He started his 

working life as a convoy driver, but left to 

start up a delivery business. 

Project 

The Lohr trailers are the most sophisticated 

in South Africa with air suspension to aid 

with driving and safety. 

They are perfectly matched to the air 

suspension of the Actros 2535. 

The Actros workhorses have been specially 

modified for the trailers, and to the 

business needs of the drivers. Each cab is 

equipped with connections for telephones 

and fax machines, as well as a sound 

system, airconditioner and cruise control. 

In addition, each has a single-piece lower 

bunk, adjustable steering wheel and a full 

complement of instruments. 

Other equipment includes Mercedes-Benz’s 

Telligent brake system with ABS and ASR, 

16-speed Telligent gearshift, 800-litre fuel 

capacity and extra headlights. 

Each rig is also equipped with satellite 

tracking, and a bar-coded trailer . The 

dealers where vehicles are delivered are 

The dealmakers for the historic handover of new Mercedes-Benz Actros autocarriers with specially designed 

Lohr trailers (from left) David Tabraham (DaimlerChrysler Services), John Miller (McCarthy Truck Centre 

Cape Town), David Taylor (Autocarriers), Liam Hickey (MVC), Christopher Briseul (Lohr France), Andy 

Kamffer (MVC), Peter Wraight (DCSA Commercial Vehicles), and Peter Treibel (DCAG). 

The future of transport 

His excellent service and cheerful 

disposition won him the support of a firm 

of attorneys in Paarl in the Western Cape, 

who helped him to buy a car carrier. 

This was before the advent of democracy 

or even BEE in South Africa. 

Since 1996, Khabana had been putting 

his carrier at the disposal of Autocarriers 

on an ongoing “evergreen” contract. 

When tenders were called, and BEE was a 

requirement, Taylor approached Khabana to 

form a partnership to bid for the business. 

“It’s a straight 50-50 venture and he is 

the chairman,” Taylor said. 

“When we came to naming the new 

company, all Caiphus wanted was that 

the name reflect that the company was 

the future of transport, so we called 

it Future Auto Carriers.” The company 

is responsible for the movement of all 

vehicles from the DCSA East London 

plant to the terminal and from the 

terminal to the distribution yard, and 

employs 12 people. 

23 

also bar-coded to enable a completely 

accountable system from when the trailer 

is loaded to when vehicles are off-loaded 

at a dealership. DCSA can be informed 

exactly where the vehicles are at any 

given moment and can be notified of 

delivery within 15 minutes of the load 

being off-loaded at a dealership. 

Helping to be helped. “The safest and 

best route for BEE success is to encourage 

suppliers to empower and develop small 

business people to become suppliers,” 

Taylor says. 

Another minor example involved a window-cleaning 

service that operated at Auto 

Carriers’ Cape Town headquarters. 

A former-employee who had left the 

company a few months earlier, made 

enquiries about available business opportunities. 

Taylor’s response was to offer him 

an old bakkie and helped set him up to 

start a small window cleaning business. 

The business has since blossomed into 

an economically viable and efficiently run 

business that services a number of offices 

and blocks of flats. 

“Empowerment needs assistance, but at the 

end of the day the people involved have 

to do it themselves. They must have a 

workable business plan. 

“I had a lot of help in life to get where 

I am, and there are a lot of people in 

this country who because of their colour 

had been disadvantaged and need help. “By 

helping people, you will also be helping in 

growing your business.”

24 South Africa 

Awards 

Sisal 

project 

wins 

award 

Vic Matraiotti 

A joint project between DCSA and DCAG has 

won a prestigious worldwide award in the 

product category at the annual Environmental 

Leadership Awards in the USA. 

The sisal project - the idea of using natural fibres from South Africa in 

automobile components by replacing man-made fibres - was first raised 

in a Southern Africa Initiative (SAFRI) discussion between DCAG’s 

chairman, Jürgen Schrempp, and DCSA’s chief executive, Christoph 

Köpke, in 1997. 

The natural fibre project was joint winner out of a total of 108 projects 

in three categories. 

The project team comprised production research members Thomas P. 

Schloesser and Dr Ralph Greiner from Germany, Boyse Pillay of the 

Council for Scientific and Industrial Research (CSIR), and Vic Matraiotti, 

the Export and Procurement Purchasing Manager for Trim and Electrical 

components at DCSA. 

The team was flown to Chrysler headquarters in Auburn Hills, Michigan, 

for the award ceremony on November 26 where they received the 

coveted trophy. 

Ten teams of finalists in each of the three categories, namely process, 

product and environmental, attended the gala function. 

The DCAG/DCSA team faced stiff competition from seven US projects, 

one wholly German endeavour and another combined project of Brazil, 

Argentina, Mexico, Chile and USA. 

The right-hand drive Mercedes Benz C-Class, manufactured in East 

London for export markets, is using a sisal-reinforced rear parcel shelf

Awards 

DaimlerChrysler 

Natural Fibre Project 

in South Africa. Sisal 

is used in the C-Class 

interiors. 

developed by this team which is made 

entirely in SA from local, environmentally 

compatible, materials. 

A mixture of sisal and cotton fibres - make 

up more than 70% of this component. 

The project team was responsible for the 

technology transfer from Germany to SA. 

The supply chain included the selection 

of fibres all the way to the establishment 

of production facilities and processes 

capable of producing the high-quality 

standards required by DaimlerChrysler. 

Along with the SA Ministry of Agriculture 

and the CSIR, the project was able to 

facilitate the privatisation of three underperforming 

sisal farms under state control, 

and save much needed jobs by increasing 

the domestic consumption of sisal. 

According to Matraiotti the first step 

in establishing sisal production and 

processing in SA has been completed. 

Phase 2 of the project is about to 

commence with additional components on 

the C-Class and numerous non-automotive 

applications. 

The resulting expansion of the market for 

domestic sisal in SA will also strengthen 

the newly-created agricultural industrial 

sector. 

The project has achieved its goal of 

enabling the SA industry to participate to 

an even greater extent in the vehicle manufacturing 

process. As a result, it has been 

possible to create additional jobs along 

the supply chain and attract substantial 

investment. 

Moreover, by transferring valuable 

expertise in the processing of sisal, SA 

has positioned itself to mass-produce 

high quality, environmentally compatible 

products for a large market. 

25

26 

South Africa 

Black empowerment supplier, YKM 

Productions in Dimbaza near East 

London, who supply work clothes to 

DCSA, and Becker Automotive in East 

London, who supply audio systems, 

were both recognised as entrepreneurial 

pioneers in entering the Jürgen 

Schrempp - SAFRI Award for Excellence 

for small and medium-sized enterprises 

(SMEs) throughout southern Africa. 

DCAG Chairman, Jürgen Schrempp, is 

also the Chairman of SAFRI. 

The award is open to all SMEs in 

the Southern Africa Development 

Community (SADC) and sponsored by 

DaimlerChrysler in recognition that 

SMEs are the backbone of successful 

economies around the world, and to help 

bring SME standards in Southern Africa 

up to global standards. 

Applications are evaluated on the basis 

of the SADC Quality Model for SMEs 

which is the same as the South African 

Excellence Foundation (SAEF) Model. 

Becker Automotive was also honoured 

with the President’s Award for Export 

Achievement in the Automotive sector 

at the same function where DCSA was 

presented with a Technology Top 100 

Award and special Social and Environmental 

Responsibility Award. 

Global excellence. In presenting the 

certificates, the Head of the SAFRI 

Chairman’s Office, Josef Gorgels, told the 

SAEF’s annual Award Luncheon at the 

Theatre on the Track, Kyalami, that 

the importance of excellence as the 

Awards 

Suppliers win 

Jürgen Schrempp 

commendations 

Two suppliers to DaimlerChrysler South Africa won special 

Jürgen E. Schrempp Certificates for Commitment to Excellence, 

sponsored by the Southern Africa Initiative of German Business 

(SAFRI). The certificates were presented for the first time at this 

function. 

key to global competitiveness had to be 

stressed. 

He said South Africa had to play a 

leading role in the SADC because it 

was “the only locomotive which can pull 

southern Africa, if not all of Africa, into 

a better future”. 

“The huge African continent, home to 

some 720 to 800 million people which 

is at least 12% of the world population, 

produces less than two per cent of the 

World Gross Domestic Product,” he said. 

“Much of this is produced in South Africa 

and South Africa is almost the only 

destination of direct foreign investment 

(in Africa).” 

Because quality was the key factor in 

all business, it was essential that local 

entrepreneurs were nurtured and new 

entrepreneurship encouraged. SAFRI had 

therefore designed its workshop 

programme in the SADC around the 

SAEF Model. 

“Accordingly, this Award is based upon 

the same level of standards employed 

for comparable awards processes in the 

United States and Europe.” 

Certificates were also presented to 

Bhunya Tall Oil in Zimbabwe and the 

Mauritius Freeport Authority. 

Applying benefits. Simply applying for 

the Award brings SMEs major benefits. 

They receive an expert assessment of the 

business at a fraction of what it would 

cost for a professional consultancy, and 

the process can be used to measure, 

validate and calibrate an organisation’s 

own internal self-assessment procedure. 

The application document adds value 

by communicating how the organisation 

runs its business and what results it has 

achieved. 

The SADC Quality Model uses a 

1000-point scoring system and an organisation 

must score at least 500 points to 

qualify for the Jürgen Schrempp - SAFRI 

Award for Excellence. 

Parts excellence. At the same function, 

DCSA’s Parts Division in Pinetown 

became the first division in DCSA to be 

awarded an SAEF Prize. 

The trophy and certificate were 

presented to the General Manager for 

Parts, Herman de Bruyn, accompanied 

by the division’s Manager for Business 

Excellence, Georg Marnewick, and the 

project’s management team of Dev 

Erriah, Ian McColl, Philip Spies and 

Richard Coleman. 

Parts Division won the Business Sector 

Level 2 Prize, which is judged on 180 of 

the 360 elements in the SAEF Business 

Excellence Model. 

The Level 1 Award, based on all the 

elements, was not presented as no 

entrant achieved sufficient marks. It has 

only been presented once in the SAEF’s 

four-year history - to Honeywell Southern 

Africa in 2000. 

Marnewick said that from next year the 

division would concentrate on winning 

the Level 1 Award which would rank it as 

a world-class business operation.

Awards 27 

DCSA wins President's award 

DCSA ENDED the year with the highest 

praise possible for excellent technological, 

social and environmental achievements 

when the company won a President’s 

Award for Technology and an Outstanding 

Achievement Award for Social and 

Environmental Responsibility. 

President Thabo Mbeki personally presented the prestigious 

Technology Top 100 Award in the Automotive Assemblies 

category to DCSA’s Management Board Member for Manufacturing, 

Günter Butschek, at a gala banquet at Gallagher Estate 

in Midrand. 

The President’s Awards are the highest recognition of 

business and technological excellence by the Department of 

Trade and Industry and the Department of Arts, Culture, 

Science and Technology. They are judged by a panel of 

business and technology leaders. 

DCSA was awarded the Technology Top 100 Award 

because the company’s “knowledge management and training 

contributed to the successful adaptation of first world technologies 

to local conditions. Its world quality standards are a 

product of the participatory culture and landmark trade union 

agreements.” 

DCSA won the first Outstanding Achievement Award for 

Social and Environmental Responsibility, sponsored by 

Adcorp, for playing “a fundamental role in uplifting the entire 

East London area through the provision of employment and 

training, and extensive community programmes focused on 

education, health, sport, arts and culture.” 

Mbeki’s challange. In his address to the function, President 

Mbeki challenged companies to open themselves willingly to 

a rigorous adjudication process to help them become more 

competitive in local and international markets. 

He said government was clear in its focus on effective and 

enabling legislation geared towards helping companies to be 

globally competitive. “In so doing our objective is clear, we 

need to generate much needed foreign revenue to achieve a 

better life for all South Africans.” 

The President said the awards, which rewarded technological 

innovation and celebrated entrepreneurship, were vital. “It is 

a true reflection of how we can practically and measurably 

develop South Africa and Africa to be globally competitive.” 

President's Award assessor, Dr. Louis Fourie, of Potchefstroom Business 

School, (left) interviews DCSA's Management Board Member for 

Manufacturing, Günter Butschek, Manager for Business Excellence, 

Ernest Kleynhans, and Chief Executive, Christoph Köpke. 

World-class teamwork. Butschek said the awards proved that 

DCSA was doing the right things to transfer first world technologies 

to South Africa, and deliver world-class products to 

some of the most demanding first world countries. 

“The Technology Top 100 Award recognises that world-class 

quality is a product of our teamwork and our landmark Siyaphambili 

agreement,” he said. 

“The Social and Environmental Responsibility Award 

recognises how we uplift East London by creating jobs and 

through community programmes. 

“We believe our business cannot be separated from the 

community in which it operates and from its suppliers, 

employees and customers. Our company has engaged in social 

upliftment programmes for many years, the most recent being 

a new school and community centre built at Wesleyville in the 

severely depressed rural district of Chalumna.” 

Butschek said DCSA also contributed to the Presidential 

Projects in the Eastern and Northern Cape, and skills transfer 

to local authorities as well as to road safety programmes. 

The awards are judged by prominent business and academic 

leaders, and the assessment includes a two-hour interview on 

a detailed questionnaire. 

“The facts on which they base their final judgements are the 

result of the efforts of all our employees, and were achieved 

only because the passion of our people drives us to be the 

best,” Butschek added. 

The event was also attended at DCSA’s invitation by 

the Eastern Cape’s MEC for Economic Affairs, Enoch 

Godongwana, and acting executive mayor of Buffalo City, 

Desmond Halley. DCSA also invited suppliers Venture Otto, 

Leonische SA, Atlantis Foundries, Lear SA and YMK, the Dimbaza-based 

empowerment clothing manufacturing company.

28 South Africa 

News 

Naamsa believes the South African 

economy remains in relatively good shape 

characterised by sound macro economic 

and fiscal fundamentals, including, 

significant surpluses on the current 

account of the balance of payments, benign 

inflationary trends, conservative monetary 

and fiscal policies, growth in personal 

disposable incomes and scope for further 

tax reductions. 

For 2001, the industry remained on target 

to achieve an improvement in aggregate 

sales volumes of around 6,5%. 

For 2002, however, based on expectations 

of slower growth in the South African 

economy and the likelihood of fairly steep 

new vehicle price increases in January 

(and subsequent quarters) as a result of 

continuing exchange rate weakness - the 

industry had adopted a more conservative 

outlook and current expectations ranged 

from a no growth scenario, on the one 

hand, to marginal growth in new vehicle 

sales of 1,4% during the year ahead. 

659 3214 54654 3212 3212 32 9875 

6564 35 542 6432 6454 545 6345 

343 954 654 4687 6552 745 687 

654 4687 878 45 629 54 54 3 

954 654 4687 3281 354 765 8454 

4 224 354 34 4550 65 3554 556 

4 54 623 545 354 46 3585 254 

4 659 3214 54654 3212 3212 32 9875 

6564 35 542 6432 6454 545 6345 

54 343 954 654 4687 6552 745 687 

54 654 4687 878 45 629 54 54 3 

54 654 4687 878 45 629 54 54 3 

546 954 654 4687 3281 354 765 8454 

4424 224 354 34 4550 65 3554 556 

5654 54 623 545 354 46 3585 254954 

654 4687 878 45 629 54 54 3 

46 954 654 4687 3281 354 765 8454 

4 354 34 4550 65 3554 556 

545 354 46 3585 254 

November sales. New vehicle sales 

reported by Naamsa for November 

recorded further encouraging gains, and 

at 32 006 units reflected a year on year 

improvement of 11% compared to the same 

month last year when 28 813 sales had 

been recorded. 

Naamsa says the increase was helped by 

pre-emptive purchases to avoid generally 

anticipated sharp new vehicle price 

increases early in 2002. November’s new 

passenger car sales at 19 865 units 

reflected an improvement of 1102 units or 

5,9% compared to November 2000. 

However, compared to October 2001, an 

exceptionally strong month for new car 

sales, the November sales reflected a fall of 

454 6314 

464 3222 

932 9875 

1860 units or 8,5%. 

996 7564 

432 9454 

396 6842 

Sales of new light commercial vehicles, 

bakkies and minibuses maintained strong 

upward momentum during November, and 

at 10 938 units was an improvement 

of 2034 units or 22,8% compared to 

November last year and a slight 

improvement of 54 units or 0,5% compared 

to October. 

The medium and heavy truck segments 

turned in a mixed performance with 

a drop of 6,6%, for mediums but a 

sharp improvement of 14,3% for heavies 

compared to November last year. 

Combined commercial vehicle sales in 

recent months were at the top end 

of industry predictions and suggested 

an improvement in fixed investment 

sentiment in the South African economy. 

As expected, exports for October, the latest 

available month, staged a strong surge 

of 36,3% compared to September, and 

aggregate year-to-date new vehicle exports 

are now 57,8% ahead of the corresponding 

ten months of last year. 

Up to the end of October this year, 78 930 

cars have been exported, compared to 47 

416 during the same period last year 

Job losses. The number of persons 

employed by the South African new vehicle 

manufacturing industry - comprising seven 

major new vehicle manufacturers and 

eight specialist commercial vehicle manufacturers 

- dropped by 210 compared with 

the end of September last year to a total 

in the last pay week of September 2001 of 

32 488. 

However, Naamsa said industry 

employment numbers have been relatively 

stable and at current levels continue to 

be modestly ahead of the average monthly 

employment level for the 2000 calendar 

year of 32 280 jobs. 

Three major manufacturers, including 

DCSA, now work on a multi-shift basis to 

produce cars for export markets while the 

balance of the industry tends to operate 

11% 

Tough year predicted for 2002 

South Africa’s vehicle sales have shown an 11% increase on last year on the back of strong light and heavy 

commercial vehicle sales, but the National Association of Automobile Manufacturers of South Africa (Naamsa) 

cautions that the global economic slowdown will also put the brakes on domestic growth. 

on a single shift basis, although a number 

operate double shifts in certain production 

areas. 

Component supply. The availability and 

supply of imported original equipment 

components during the third quarter 

remained good, and prices from source 

country remained stable. 

However, upward price pressure on 

imported components continues to be 

experienced due to the weakening Rand. 

The availability of imported raw materials, 

where applicable, remained good and 

price movements remained a function 

of material prices on the London Metal 

Exchange and the Rand exchange rate. 

In local supply, fuel and energy costs and 

increases in steel prices continued to place 

upward pressure on costs. 

Local steel quality and delivery 

performance continued to improve, with 

local steel prices remaining a source of 

concern and continue to be the subject 

of ongoing discussions between Iscor and 

vehicle manufacturers. 

Production capacity. Average motor 

vehicle assembly industry capacity 

utilisation levels improved during the third 

quarter and continued to reflect conditions 

in the domestic and export markets. 

The averages for the third quarter ranged 

between 64,7% capacity utilisation for 

Light Commercial Vehicles to 80,5% for 

Medium CVs. Passenger Car capacity 

utilisation averaged 73,9%. 

Naamsa said that South Africa’s vehicle 

manufacturing capacity utilisation rate 

continued to trend upwards closer to the 

global average capacity utilisation rate of 

about 76,0%. 

89586

Gerd Kopanski 

News 

Molan Pino 

The December announcement by multinational 

Spanish automotive component group, Molan 

Pino, was welcomed by DCSA purchasing 

specialist, Gerd Kopanski, who said the objective 

of the exercise was to reduce costs and 

manufacture locally where feasible. 

The components are manufactured from energy 

absorbing material and used in door panels, 

bumpers, door pillars etc. 

“This is brand new technology for South Africa 

and there are only a few suppliers worldwide,” 

Kopanski said. 

The announcement of the signing of the 

agreement between Molan Pino and DCSA 

follows months of negotiations to facilitate the 

establishment of the plant. 

New technology. The Spanish-German owned 

group also has plants in Germany, Brazil and 

Slovakia. The company’s production process is 

high-tech, and similar production plants that use 

Expanded Polypropylene (EPP) are only found in 

Europe, Japan and the US. 

The plant is expected to be in production by the 

Spanish 

supplier to 

set up in EL 

The building of a R12-million high 

technology plant in 2002 to produce 

energy absorbing components for 

Mercedes-Benz in East London is part 

of DCSA’s ongoing commitment to 

attracting oversees suppliers and new 

technologies to the country. 

29 

second half of 2002. 

The new plant will be environmentally-friendly 

as it only uses steam and water in the production 

process and the products are fully recyclable. 

To support DaimlerChrysler's Export programme, 

DCSA is actively pursuing investment in new 

Technologies to decrease material cost 

Other technologies specific to interior and 

exterior trim, which DCSA is investigating 

include Glass Mat reinforced Thermoplastics 

(GMT/LFT); Foam-in-Place, and Two-Component 

Injection Moulding, Kopanski said.

30 

South Africa News 

Atlantis lands R95m deal 

Atlantis Foundries, sister company of 

DaimlerChrysler, has secured a lucrative 

deal worth Euro 12,5 Million (R95-million) 

to manufacture 400 first machine stage 

raw M111 cylinder block castings a day for 

the new Mercedes-Benz C-class 4-cylinder 

engines for export to Stuttgart. 

The independent company, situated in 

Atlantis near Cape Town, specialises 

in manufacturing cylinder blocks and 

gearbox casting for mainly commercial 

Manager for Human Resource Development in East London, 

Alan Eyre (left) with Management Board Member for 

Manufacturing, Günter Butschek, and DCAG’s Manager for 

Training Projects Overseas, Federico Vollrath (right), in the 

East London Training Centre’s new Mechatronics Centre. 

SMH purchase 

approved 

The South African Competition Commission has given final 

approval for DCSA’s purchase of 75% of the Sandown Motors 

Holding (SMH), signed in June 2001. 

SMH, which will be headed by Roy McAllister, will be 

managed as an independent subsidiary of DCSA. 

The SMH Board of Directors, consisting of Christoph Kopke 

(Chairman) will obtain the DCSA management integration 

into SMH, Roy McAllister, Rudi Borgenheimer, and Mike 

Broom. 

vehicles and has the capacity of 40 000 

tonnes a year, making it the biggest 

foundry in South Africa with the capacity 

to compete with overseas operations. 

Besides the 400 M111 cylinder block 

castings manufactured a day, the company 

will manufacture 10 000 S60 cylinder 

blocks a year which are used in the engine 

of the Detroit Diesel 6-cylinder in-line 

engine. This figure will increase steadily to 

40 000 units in 2003. 

Managing Director, Gerry Klos, said: “We 

are very excited by this deal and it shows 

we can manufacture world-class products 

in South Africa. The fact that some 40% of 

our business is supplying DaimlerChrysler 

with our product further strengthens the 

quality of Atlantis Foundries’ products.” 

R95m 

Hi-tech training in East London 

A new world-class Mechatronics Centre that will lead the way to the future in 

high-technology automotive training has been opened at DaimlerChrysler South 

Africa’s Technical Training Centre in East London. 

The centre will train apprentices in the latest Programmable Logic Control (PLC) 

systems used in modern production lines with the same facilities as in Bremen 

and Sindelfingen. 

DCAG’s Manager for Training Projects Overseas, Federico Vollrath, said the East 

London centre provided the same standard of technical training as in Germany. 

“There is no difference in the products (Mercedes-Benz C-class) produced in 

Bremen and East London, so we need the training to be the same,” he said. 

At any given moment, DaimlerChrysler worldwide is training 10 000 apprentices, 

mostly in technical knowledge and skills. There are now 33 Training Centres 

outside Germany. 

Disabled challenge 

DaimlerChrysler South Africa’s Chief Executive, Christoph 

Köpke, praised accessory supplier, Fabkomp, as a shining 

example that more South African companies should emulate. 

Köpke was speaking at the provincial launch of national 

disability month at the Fabkomp plant in King William’s Town. 

A quarter of Fabkomp’s 125 permanent employees has physical 

disabilities. 

Fabkomp’s Chief Executive, Brian Harmse - a former DCSA 

Commercial Vehicle engineer who managed the CV Flexibility 

Hub in East London - said that although there was initial 

scepticism at employing people with disabilities, this faded once 

disabled employees proved their productivity. 

Employees include people with impairments in hearing and 

sight, polio and epilepsy, as well as people without limbs. 

Fabkomp manufactures Mitsubishi Colt and commercial vehicle 

parts for DaimlerChrysler. It is also involved in the supply of 

parts in the multi-million rand Debis/Telkom contract. Debis is 

DaimlerChrysler’s fleet management division.

News 

Freightliner has launched SmartShift, a high-technology 

new system that provides a convenient driver interface 

for new automated mechanical transmissions available 

in the market, in South Africa. 

SmartShift electronically manipulates engine speed and torque 

for the driver and moves the clutches in the transmission with 

actuators so that a float-shift is completed without the need to use 

the clutch. The clutch is used only for starting and stopping. 

SmartShift is mounted to the steering column, to free up interior 

space, and a small display provides information on the gear 

engaged and gears available under current driving conditions. 

All the driver needs to do while travelling is pull or push the 

SmartShift lever to change up or down without having to use 

accelerator and clutch pedals. 

Bell’s best 

DaimlerChrysler WAS honoured with Gold and Silver awards for being a leading supplier to Bell 

Equipment at Bell’s Supplier Conference recently. 

Bell, based in Richard’s Bay, KwaZulu-Natal, manufactures specialised earthmoving vehicles and equipment. 

DaimlerChrysler’s Powertrain Unit (PTU) was presented with the Gold Supplier Award for Industrial Engine sales, while the 

Parts Division in Pinetown won the Silver Award for Parts sales. The conference also announced the launch of Bell’s new 

D-series, which are fitted with Mercedes-Benz OM500 and OM900 electronic engines. 

Jane Alexander 

SmartShift comes to South Africa 

Bom boys 

sculptor wins 

Jane Alexander, a senior lecturer at 

the Michaelis School of Fine Art in 

Cape Town, has won the Daimler- 

Chrysler Award for South African 

Sculpture 2002. 

One of the jurists, Harald Szeeman, curator and director of the 

Department of Visual Arts, La Biennale di Venezia, Switzerland, 

said her work gave form “to the fragility of a multi-cultural 

society”. 

“Her protagonists - a gang of street children known as the Bom 

Boys - neither look at each other nor the viewer; they do not 

ask for acknowledgement and exist in a nowhere land where 

the difference between victim and perpetrator is blurred and 

immaterial.” 

The other nominees for the award were: Albert Munyai from 

Venda, Langa Magwa from KwaZulu Natal, Paul du Toit from Cape 

Town, Moses Seleku, Joachim Schonfeldt, Claudette Schreuders 

and Minette Vari from Gauteng. 

The Award is worth about R500 000 and consists of a cash prize 

of DM10 000, the international production of a glossy, full-colour 

31 

catalogue of works, an opportunity to study for three months in 

Germany or the United States and a series of solo exhibitions in 

Germany and South Africa during 2002. 

DCAG’s Chairman and initiator of the Award, Mr J¸rgen 

Schrempp, as part of celebrations commemorating South Africa’s 

National Day will present the award to Alexander at a ceremony 

on May 16, 2002, in Stuttgart. 

DCSA’s Management Board Member for Finance, Mr Rudi Borgenheimer, 

announced that in future the Award would be under 

the custodianship of DaimlerChrysler South Africa and broadened 

to be responsive to the specific needs, conditions, changes and 

potentials of the South African arts and culture sector. 

The Bom Boys which have made Jane Alexander an internationally recognised 

sculptor and helped her to win the DaimlerChrysler Award for South African 

Sculpture 2002.

Together in success 

Global Supplier 

An Extended Enterprise®- Magazine 

For Suppliers and Staff of 

DaimlerChrysler 

3 rd Quarter 2001, Issue No. 1 

South African Edition 

Publisher: DaimlerChrysler South Africa (Pty) Ltd 

South African Edition: 

Vuyelwa Vika, P. O. Box 671, East London, 5200, 

South Africa. 

Tel: +27 (43) 706 -9614, Fax: +27 (43) 706-2443 

vuyelwa.vika@daimlerchrysler. com 

Editor: Mike Chandler, River Publications 

Box 19332, Tecoma, 5214, South Africa. 

Tel: +27 (43) 743 -5575, Fax: +27 (43) 743-5110 

river@intekom. co. za 

Layout: Debra Grunewald: Art Director, River Publications 

Photo credits: Gary Horlor/ DaimlerChrysler 

Printing: Sisonke Printer 

Worldwide contacts: 

Germany: 

Responsible for Content: Claudia Dautermann, 

MEP/PCom, Hauspostcode X486, DaimlerChrysler, 

71059 Sindelfingen, Germany 

Tel: +49 (70 31) 90-8 87 04, Fax +49 (70 31) 90-4 51 06 

claudia. dautermann@daimlerchrysler. com 

U. S. A. : 

DaimlerChrysler Corporation, 

Jana Miesen, 

CIMS 484-06-10, Auburn Hills MI USA, 48326-2527 

Tel: +1 (248) 5 76-36 16, Fax +1 (248) 5 76-21 93 

jm358@daimlerchrysler. com 

Brazil: 

DaimlerChrysler do Brasil Ltda. , 

Magdalena Thaler Cuevas, Av. Alfred Jurzykowski, 

562, Cep. 09680-900, Sao Bernardo do Campo – SP 

Tel: +55 (11) 41 73-62 94, Fax +55 (11) 41 73-84 00 

magdalena. t. cuevas@daimlerchrysler. com

GlobalSupplier - Daimler

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