Contitrade Africa acquires local tyre group Jody’s
CONTITRADE Africa, a newly founded subsidiary of Germany’s Continental, yesterday announced it has finalised a transaction with Jody’sTyres Group in Johannesburg, acquiring eight tyre-fitment stores.
Jody’s was bought because ContiTrade Africa recognised the demand for vehicles in SA.
SA’s automotive production and development programme, launched earlier this year, aims to boost total vehicle production in the country.
It will allow vehicle manu- facturers with a plant volume of at least 50,000 units a year, to import a percentage of their components duty free.
The programme seeks to encourage the industry to ramp up total South African vehicle production to 1.2-million units per year by 2020.
It also includes deepening of the components industry with the aim of boosting local production for domestic and export use.
This is unlike the 1995 motor industry development programme, which focused on exports.
ContiTrade Africa is responsible for franchise and retail operations in
We are pleased with the response from interested business owners in this new concept
Africa with two main systems, FIT&GO and Best Drive — some of which are company-owned, while others are franchise stores.
Of the eight stores acquired through the Jody’s Tyres deal, three will be converted into FIT&GO and four into Best Drive, with one store trading as Jody’s Tyres. Jody’s Tyres has operated since 1991 and is now 100%-owned by ContiTrade Africa.
ContiTrade Africa CEO Rolf Lensch said Jody’s Tyres staff would retain their jobs and would benefit from training opportunities offered by the company.
“Our stores services extend beyond the fitment of tyres. They will have access to Continental Tyre SA’s product offering for passenger, 4x4, light truck (radial and bias), truck radial and speciality tyres.
“In addition to tyres, the product assortment will extend to car parts and related fitment services.”
Since opening the first franchise store in December, ContiTrade Africa will have about 20 outlets by the end of this year.
“We have been strengthening our distribution network throughout SA and we are pleased with the overwhelming response from interested business owners in this new concept,” Mr Lensch said.
As subsidiaries of German-based Continental, ContiTrade Africa will work closely with Continental Tyre SA. The latter will continue to run the ContiPartner loyalty programme as a key distribution channel.