LAND ROVER TESTS GABRIEL SAFARI HDP SHOCK ABSORBERS

Gabriel recently hosted an high profile event at the Johannesburg Land Rover Experience Kyalami to demonstrate the performance of the newly launched Gabriel Safari HDP 4X4 shock absorbers.

"The event was organised to compare this new extension to the Gabriel family against other makes of shock absorbers and to continue the drive to focus on the importance these products have on vehicle, passenger and pedestrian safety," said Sean Staley, executive manager marketing, Control instruments-Automotive.

"One of the reasons for the initiative is to educate drivers about vehicle safety. Shock absorbers are an essential part of the suspension system, but are generally not as visible as for example, the wear on a vehicle's tyres. As a result, people know very little about shock absorber wear," said Staley.

"We tested four vehicles over a heavy-duty 4x4 off-road environment and on a skid pan track," said Sean Renton of Land Rover Experience Kyalami.

"The HDP shocks handled obstacles and embankments exceptionally well. Overall, we were impressed," said Renton.

"One of the primary end results of a good shock absorber is heat control. High-temperature oil allows the Safari HDP shock to operate at higher temperatures making it more suited to severe off-road conditions," said Staley.

"The design of the Safari HDP is based on strength, durability and performance. It uses a larger bore working cylinder which reduces stress on the working components of the shock, increasing durability and giving a longer life expectancy," he said.

"360º reinforced welded mounts, known as 'fully welded mounts', add significant strength to the mounting points. This is especially necessary in severe off-road conditions."

Regarding Gabriel's drive on safety, one of the guests for the day summed it up "We support Gabriel and what they are doing in educating the public about the dangers of worn shock absorbers. There are a number of road accidents caused by worn shocks and other suspension faults. The Safari HDP is a clear indication of Gabriel's dedication to product design, development and clearly shows there expertise in local manufacture."

Gabriel focuses on "Incentives Campaigns" building up for December

Gabriel is currently running, via its wholesalers and channel partners, a variety of campaigns building up to December.

There are over 80 overseas trips to exotic destinations and more than 100 other prizes including iPads, digital cameras, local holidays and flips in the world-renowned Gabriel aerobatic planes.

Gabriel's focus this festive season is on safety. Part of the campaign is to encourage motorists to check their shocks before going on holiday to ensure a safe journey.

Here Are Some Guidelines for Identifying Worn Shocks:

	If your steering wheel vibrates, this is a possible sign that you could have worn shock absorbers. The extra movement of the suspension causes strain on the steering components and suspension.
	Worn shocks absorbers can make your vehicle's tyres bounce. This in turn can create bald patches on the tyres. Bald patches are dangerous and affect the performance of the tyre.
	Braking with worn shocks can result in your vehicle nose-diving.
	In strong winds it will be more difficult to control your vehicle. Your vehicle will veer in side winds and is especially at risk on bridges, cliffs and narrow roads.
	Your vehicle will not hug the road on bends. This can make the car swerve uncontrollably, and especially at higher speeds.
	Leaking oil is another indicator of a worn shock absorber. If the shock is leaking oil you need to replace the shock immediately because the less oil in the shock, the less resistance there is through the valves.
	On rough road surfaces worn shock absorbers can make the car's wheels bounce. Worn shocks can also place severe stresses on the wheel bearings and suspension components, not to mention the increased risk of an accident.
	Dented or damaged shocks can be caused by outside forces such as stones. This can lead to the restriction of oil between the inner and outer tubes, resulting in poor performance of the shocks.

CONTROL INSTRUMENTS TAKES BOLD STEPS TO REPOSITION ITS BUSINESS

Automotive OEM manufacturer and aftermarket distributor, Control Instruments (CI) has made a bold step forward in its stated objective to reduce its dependence on its underperforming OEM businesses and to increase its focus on its automotive aftermarket business.

It announced today that it had advised the directors of Pi Shurlok UK that it would no longer continue to fund the UK business. This effectively meant that Pi Shurlok UK would be place under administration, with a view to selling it out of administration.

Speaking at the announcement, group CEO Richard Friedman said the decision was in the best interests of the Group. He added that the main reason behind the Group's decision to stop funding Pi Shurlok UK was related to the increasing potential for future losses in this business due to the dramatic fall off in future prospects and the very poor economic environment in which it is operating.

This action does not affect the Group's aftermarket subsidiary, CI Automotive nor does it affect its OEM subsidiaries in South Africa. These businesses will make up the Group going forward.

Friedman said that most importantly the decision to stop funding Pi Shurlok UK stops the current and potential future drain on the Group's cash resources. It also will enable the Group's management to focus less of its time on sorting out problems associated with Pi Shurlok UK and more time focusing on opportunities in the Group's aftermarket sector. The aftermarket already accounts for the largest portion of the Group's profitability and is extremely well positioned for future growth.

The aftermarket business has gone from strength to strength over the past three years. It is profitable and generates cash. The business reported revenue of R472.9 million and normalised EBITDA of R53.2 million for the year ended 31 December 2010 and revenue of R230.7 million and normalised EBITDA of R23.2 million for the six months ended 30 June 2011.

On the other hand, the results of the OEM businesses have been extremely disappointing for the past few years. These businesses have not fully recovered from the effects of the global meltdown in the automotive industry in late 2007 and 2008. The OEM businesses reported revenue of R436.7 million and normalised EBITDA of R7.9 million for the year ended 31 December 2010 and revenue of R221.6 million and a loss at normalised EBITDA level of R1.1 million for the six months ended 30 June 2011.

Pi Shurlok (Pty) Ltd, which is based in Pietermaritzburg, ("Pi Shurlok SA") is in the process of rationalising its product base to ensure that its business is profitable and cash positive. Its core customers have been fully consulted during this process.

Pi Shurlok Engineering is based in Port Elizabeth and manufactures and supplies plastics components. It is profitable and contributes to cash flow.

The following financial information has been given as a guide until such time as the Group is in a position to establish final figures.

The Group purchased the Pi Shurlok UK business in December 2006 for R73-million. Subsequently the Group has shared in post-acquisition losses of approximately R20-million and advanced loans of approximately R25-million.

If the net investment by the Group had been fully written off in the interim results for the six months ended 30 June 2011 it would have resulted in a reduction of approximately R65- million in net asset value and approximately R82-million in profits after allowing for the realisation of accumulated foreign currency gains and losses. The reported loss per share would have increased from 5,3cents per share to 65,0 cents per share. The net asset value per share would have reduced from 211 cents per share to 164 cents per share.

Any potential recoveries by the Group have been ignored.

The final figures will depend on the date on which Pi Shurlok UK is moved out of administration, either by way of a sale of its assets or final liquidation, and the prevailing rate of exchange rate at that time.

About Control Instruments:

Control Instruments Group Limited is a holding company, based in South Africa. The Group has been listed on the JSE Limited (JSE) since 1987, trading under the share code "CNL", in the Electronic and Electrical Equipment sector.

CI Automotive - Automotive aftermarket
CI Automotive is based in Johannesburg, South Africa and sells premium branded products to the automotive aftermarket in sub-Saharan Africa.

The company has a significant basket of products. Brand names owned and/or exclusively distributed by CI Automotive include Gabriel, VDO, Echlin, Warn, Autocom, Acsa-Mag and Mag Brakes.

Pi Shurlok in South Africa - OEM aftermarket
Pi Shurlok's South African operations are based in Pietermaritzburg and Port Elizabeth. The manufacturing facility in Pietermaritzburg manufactures products for original equipment (OE) and Tier 1 manufacturers and the operation in Port Elizabeth manufactures and suppliesplastic components.

Gabriel Introduces eTraining for Hi-Q Fitment Centres

Gabriel, the premier shock absorber brand of Control Instruments-Automotive, have introduced an eTraining shock absorber programme for Hi-Q fitment centres.

Hi-Q is believed to be the first fitment centre group to implement a web-based eLearning suite covering the installation and maintenance of shock absorbers for upskill fitment staff.

Hi-Q network development manager, Johann Hendriks, said Hi-Q franchisees are able to log onto Gabriel's website and do each of four training courses at their own speed. On completion, candidates will do an online test for each module.

"The course will enable franchisees to gain a working knowledge of shock absorbers through the implementation of skills and knowledge," he said.

"eLearning is a convenient method to enable fitment centre staff to do training in their own time and virtually anywhere. The training modules cover; Beginner, Intermediate, Advance and Xpert," said Hendriks.

Once the course has been completed, a competency certificate will be issued.

Gabriel's executive manager marketing, Sean Staley, said the aim is to teach skills in fitting shocks and assist customers in evaluating when to replace their shocks.

This is the basis of the recently launched Safe Zone 2.6 programme. It is a safety programme educating fitment counter staff, management and motorists about vehicle and passenger safety. This includes responsible driving through education-based branding and training.

"The name Safe Zone 2.6 is based on road tests performed on an average passenger vehicle travelling at 80km per hour with good shock absorbers compared to a vehicle with worn shocks," said Staley.

"Good shocks will stop a vehicle on average 2,6 meters sooner than a similar vehicle with worn shocks because with faulty shocks the wheels loose contact with the ground when applying brakes in an emergency."

"The Safe Zone 2.6 programme creates a simple unified two-way value proposition for each retail outlet and educates consumers on the importance of checking their shocks regularly," he said.

Gabriel Donates Shocks to Family Missionary Services

Gabriel has donated shock absorbers to Family Missionary Services, a non-profit organisation staffed by full-time volunteer workers.

"As a voluntary organisation, we depend largely on the assistance of companies and individuals to make it possible for us to continue our work. Our current projects include sponsoring a crèche for under-privileged children in Diepsloot; distributing food to needy families and single mothers, and a feeding scheme for at-risk women and children in Tembisa; doing counseling at Pretoria West College; and sponsored treats at the children's wards in Pretoria Academic Hospital," said Family Missionary Services spokesperson Lanthus Clark.

"We conduct regular mission trips to Malawi and Zambia to provide free training to pastors, conduct seminars on various Biblical and social themes, distribute Bibles and educational materials, and do outreaches at universities, schools, childrens' homes and other institutions," he said.

Our members have arranged the sponsorship of educational materials to centres for underprivileged children at various institutions, such as the Abraham Kriel Children's Home, Boy's Town, Kanyisweni Children's Home and Little Eden, and numerous other institutions throughout Africa.