Capital Equipment News December 2015

CONSTRUCTION

KOMATSU AND RENTWORKS launch KomRent for financing solutions

K omatsu South Africa and leading as- set rental specialist RentWorks have forged a strategic alliance set to significantly benefit customers in the local capital equipment market. Known as KomRent, the newly formed di- vision provides a suite of dynamic funding solutions that give customers access to state-of-the art Komatsu equipment without adversely affecting their cash reserves. “KomRent represents our response to tough market conditions and a shift in the purchasing strategies of customers in the mining and construction industries. Today’s customers need more flexible funding op- tions and we believe that this new partner- ship offers them the intelligent and cost-ef- fective solutions they need,” says Komatsu General Manager, Sales and Marketing, Mike Helm. RentWorks, a FirstRand Group Company, finances more than R3 billion in assets for more than 400 organisations, across a range of industries and asset types. T he local truck industry has recorded its ninth consecutive month of decline during October, despite the market showing some signs of recovery over re- cent weeks. According to the latest combined results released by the National Association of Automobile Manufacturers of South Afri- ca (Naamsa), Associated Motor Holdings (AMH) and Amalgamated Automobile Dis- tributors (AAD), year-to-date sales have declined by 4.3% and the end of October to reach 25 133 units. “The decline was recorded across the ma- jority of segments, with Heavy Commercial Vehicles being the only exception with 1.2% year-on-year growth,” said Torbjörn Christensson, President of Volvo Group Southern Africa. “Most of the segments KomRent is a residual-based rental provider that enables businesses to acquire equip-

Michael Bolland, CFO Komatsu SA, Trevor Cronje, CEO Rentworks, Deon van Wyk, GM Sales,Wesbank.

ment for an optimum period at the most cost-effective rate. Komatsu buyers will now be able to procure their Komatsu equipment without having to outlay huge amounts of cash up front. The KomRent solution affords client’s the ability to spread payments over the useful life of the asset. This enhances cash flow; and the client still maintains con- trol with flexible end of term options.

“We are delighted to enter into this alliance and believe that with our unique financial expertise and Komatsu’s experience in de- livering high quality capital equipment, we are set for a formidable partnership that will yield substantial benefits for clients across the mining and construction indus- tries,” says RentWorks Group Sales Direc- tor Kuben Rayan.

TRUCK SALES track tough economic climate in South Africa

have narrowed their losses, which is a bit of positive news for the industry.”

Sales in the Medium Commercial Vehicle (MCV) segment declined by 5.1% when compared to 2014’s year-to-date perfor- mance, to log 8 507 sales. Extra Heavy Commercial Vehicles (EHCV) recorded a 5.2% loss in sales to conclude October on 11 216 units sold so far this year. The Bus segment is taking the biggest hit, with a 10.1% decline in sales and only 908 sales recorded by the end of October. “We are in for some challenging times ahead, with a range of macroeconomic factors, as well as decade-low business confidence levels, having a negative impact on the South African truck market,” said Christensson.

Torbjörn Christensson

“In these tough market conditions, it is those truck manufacturers who excel at af- termarket support and quality service who retain customers and ultimately win new business. Literally every sale and every service counts in this extremely competi- tive environment.”

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