Up Close and Personal With Dunlop

(SA Treads – South Africa) April of this year marked the end of an era. Industry icon, Pierre Dreyer, outgoing managing director of Dunlop Tyres SA and Mike Hankinson, CEO, officially announced their joint retirement from Dunlop and the tyre industry as a whole, in a move that will see them pursuing new business ventures and personal aspirations in the months and years to come. Simultaneously, Brazilian-born Dr Luis Ceneviz assumed the role of managing director of Dunlop Tyres SA on 1 April 2007. Amidst all the last-minute frenzied activity, we managed to secure an exclusive interview with all three, to not only recap any historic milestones the Company may have achieved, but gain some insight into what we can expect from this new tyre manufacturer going forward.

It is with a measure of sadness that we bid Mike and Pierre farewell. Gentlemen, may we ask what led up to your decision to retire?
(MH) Dunlop is suitably placed, structured and ready to enter the next level of its evolution as a company. There is no better time for ‘new blood’ to come in and initiate the process. I will retain a non-executive position on the board of directors, and will make myself available should the need arise, but the time is ripe for someone of Luis’ experience and background to take over the reins and lead the Company into the future.

(PD) Our contracts were due to expire in 2008 but Luis’ arrival prompted consultation between us and our parent company Apollo, whereupon we all agreed that if Luis was to effectively impart his vision and leadership style on the Company, this would best be achieved without my involvement. I’m a terrible ‘interferer’ as it is, and now that Dunlop’s subsidiary businesses excluded in the Apollo acquisition have been wrapped up and finalised, there is no valid reason for me to stay on. Nonetheless, I will remain at hand for assistance and support should it be required. I’ve developed a real passion for this business and for Dunlop in particular, so should they call upon me I’m a mere five minutes away.

Mike, what’s next on the cards for you?
As I mentioned, I will continue my involvement with Dunlop in a non-executive capacity, whilst simultaneously pursuing a full-time career in retail as Chairman of the Spar supermarket group.

What about you Pierre?
Again, much like my colleague, I will make myself available on a consultancy basis for any current or future projects for which Apollo might elicit my assistance and expertise. Apollo is pursuing its ‘global’ ambition which presents numerous opportunities of which I could avail myself.

In addition, my love of the sea and surf has translated into a joint publishing venture in the form of a dedicated surfing magazine that retails across South Africa.

In short, I plan on pursuing a variety of projects and opportunities that interest me and evoke passion.

Dr Luis, may we extend a warm welcome to you. Would you please outline your background for the benefit of our readers?
With pleasure and please call me Luis. My career in the tyre business began 28 years ago when I joined Goodyear Brazil as a junior trainee, a position that provided the foundation for a succession of posts within the manufacturing sector in countries as far flung as Canada, Argentina, Colombia, India and Australia.

After 19 years spent in tyre manufacturing, an opportunity in Mexico enabled me to shift my focus onto sales and marketing, a 12-month post that was followed by another year in sales and marketing, this time in Colombia.

This was followed by a stint in India as managing director of the Goodyear operation there and a further 2.5 years in Australia as CEO of South Pacific Tyres – my first experience in the distribution sector entailing the management of 400 company owned stores. My Australian post also marked my first exposure to the Dunlop brand which in that part of the world, is wholly owned by Goodyear.

I then returned to Brazil and was contemplating starting up my own remoulding business when Apollo President, Mr Kanwar, called and offered me this new opportunity in South Africa. I first met Mr Kanwar in India whilst studying for my phD in management and we had kept in touch over the years. The offer came as an unexpected surprise but after some discussion, my wife and I packed our bags once more and headed for South Africa.

You haven’t been here all that long but have you begun to form an impression of the market?
(LC) As you correctly point out, I only arrived a few weeks ago. Notwithstanding, may I say how encouraging it has been to see the close relationships that appear to exist between Dunlop and the dealer members of its loyalty programme, DAD. I have been accompanying Mike, Pierre and the team on road shows and regional meetings around the country that unveiled the most ambitious travel incentives to date in the form of trips to the World Cup Final and Euro-Disney in France later this year and all-inclusive trips to Mauritius. The relationships Dunlop appears to have cultivated with its affiliated distribution partners in this country are quite impressive.

(PD) The growth of the DAD loyalty programme in the market is one of our greatest achievements, with the dealer network now totalling ????? service outlets across South Africa.

Dunlop – long recognised to possess a remarkable level of ‘cottage industry sophistication’ is presently in great shape, finding new levels of productivity that previously eluded us.

Both Dunlop plants (Ladysmith and Durban) have seen significant investment in the form of equipment and machinery upgrades, with automation remaining at the forefront. I can safely say the equipment utilised at the Ladysmith plant is arguably the most modern and intricate in the country, producing world-class products. Current levels of automation enable us to build and produce an ultra-high performance tyre every 30 seconds which is a real achievement for this part of the world. That said, there remains great potential that still needs to be unlocked within Dunlop’s manufacturing facilities, something I have no doubt will take place under Luis’ guidance.

Luis, did your current assignment come with a time limit?
My South African assignment is open-ended and likely to be the longest of my career. One needs a minimum of three years in a position such as this, to make a real difference.

How would you describe your leadership style?
By nature I’m non-confrontational and welcome a high level of involvement from the people I work with. My leadership style is a collaborative one, but I would have no hesitation stepping in should the occasion demand it.

Can we expect to see Dunlop taking a new direction in terms of strategy?
(LC) Traditionally Dunlop has navigated an alternative path to that of its domestic competitors in that it has sought to create brands and export opportunities, all of which could not be achieved without constant innovation and sizeable investment. Dunlop will continue pursuing this philosophy whilst simultaneously striving to improve economies of scale that can be translated to the end user.

Do you foresee any further upgrades/plant improvements in the foreseeable future?
(LC) Dunlop is currently exploring a new product opportunity by way of a new mould that could offer unparalelled c.p.k advantages to progressive transport operators. We cannot disclose much more at this point in time, but suffice it to say all will be revealed in the near future.

Can we expect the release of new products during the course of 2007?
(PD) Very much so. This year Dunlop will launch new hi-tech ranges for the passenger tyre sector, together with two innovative truck sizes, among them a new super-single size. We are particularly proud of our accomplishments in this area, currently ranking as the only manufacturers in the southern hemisphere producing super-singles.

As we close an indelible chapter in Dunlop’s history with Mike and Pierre’s departure, what is your vision for Dunlop Tyres SA going forward Luis?
Dunlop will continue identifying niche markets and opportunities and capitalising on them. We will see a greater focus than ever on high-performance tyres – particularly with respect to 17 and 18 inch sizes, more focus on obtaining the right equipment that will help us achieve this and most important of all, continue to strive towards sustainable productivity and profitability.

Gentlemen, it has been a pleasure. Mike and Pierre, farewell for now. We wish you everything of the best for the future. Your presence in the tyre industry will be sorely missed. Luis, all the best to you in your new position and we look forward to catching up with you in the not too distant future.