Select Page

Suzuki’s feisty new Jimny arrives on local shores

Suzuki’s feisty new Jimny arrives on local shores

At just over 3.6 metres in length, the new Suzuki Jimny that arrived at dealers this week, is some 50mm shorter than its predecessor, and the engine displacement has been increased to 1500 cc.

The new engine is rated at 75 kW at 6000 rpm and 130 Nm at 4000 rpm.

More boxy outside and more roomy inside, while not losing track of its impressive ancestry, motivated the Suzuki engineers who meticulously respecced the entire vehicle.

Divisional Head of Sales and Marketing at Suzuki Auto South Africa, André Venter, said the new Jimny followed the same design brief as all other Suzuki jeeps before it: “Build a compact, lightweight, affordable offroad vehicle with true 4×4 capabilities.”

From the chassis up, every aspect that contributes to the little Suzuki jeep’s incredible 30-year success in southern Africa, came under scrutiny. The new Jimny had to be even better than its predecessors who have all built a solid reputation for genuine offroad capability packaged in a compact city runner.

In the new generation, this is in its most concentrated form, thanks to the Jimny Chief Engineer Hiroyuki Yenezawa’s philosophy of “making the Jimny more attractive by refining every small detail of the model’s design.”

The backbone of the new Jimny is the ladder frame chassis. In the new model, Suzuki’s engineers have added a patented cross member, the Suzuki X-member, between the two rigid axles.

The very rigid ladder frame is the basis of the Suzuki Total Effective Control Technology (TECT) system, which integrates high-strength steel, computer-aided design and the rigid platform for greater crash safety. The X-member consists of two diagonal cross members to limit body flex in serious cross-axle offroad driving.

The second essential element of a true offroader is the rigid axle suspension system which mechanically forces one wheel down if the opposite wheel is raised from the ground. The axle system also prevents the nose from diving under speed, which is a benefit when driving in dunes.

Suzuki has strengthened the axle housings by 30% and has added a steering damper to the front suspension to limit steering wheel kickback and vibration on rough terrain.

The third element is the proprietory ALLGRIP PRO four-wheel drive with low range transfer gear. The all-new Jimny replaces the push-button selection between 2H (rear-wheel drive), 4H (4WD high gear) and 4L (full low range, 4WD) with a shift lever that is directly connected to the transfer gear and can switch between 2H and 4H on the fly at speeds of up to 100 km/h.

The mechanical four-wheel drive system is greatly enhanced by Suzuki’s proprietary Brake Limited Slip Differential and electronic stability control systems. The Brake LSD-system adjusts torque to the wheel with grip if another wheel on the same axle starts spinning. The system has an extra-power mode, which kicks in below 30km/h in low-range mode for the best possible traction.

More applicable for overland enthusiasts are the angled front and rear bumpers that not only keep them out of the way of rocks and shrubs, but also increase the approach and departure angles. The front bumper design also exposes more of the tyre tread on a horizontal plane for greater climbing capability in rocky off-road conditions.

At the rear of the vehicle, Suzuki designers have moved all the lights into the horizontal rear bumper, which has allowed them to create a wider rear door, for increased practicality.

The spare wheel is fitted to the rear door for easy accessibility, while also freeing up space underneath the luggage floor and allowing for an improved departure angle.

Fuel consumption on a combined cycle has been tested at 6.3 litres per 100 km for the manual and 6.8 litres for the automatic model. The previous generation Jimny was rated at 7.2 litres and 7.8 litres per 100 km respectively.

The Jimny offers two specification levels (GA and GLX), and two transmission options (five-speed manual and four-speed automatic)

The GLX model is standard with a 4-year / 60,000 km service plan and the GA model with a 2-year / 30,000 km service plan. All models are sold with a 5-year / 200,000 km mechanical warranty.


 

About The Author

Sanlam 2018 Annual Results

7 March 2019

 

Sanlam’s 2018 annual results provides testimony to its resilience amid challenging operating conditions and negative investment markets

Sanlam today announced its operational results for the 12 months ended 31 December 2018. The Group made significant progress in strategic execution during 2018. This included the acquisition of the remaining 53% stake in SAHAM Finances, the largest transaction concluded in the Group’s 100-year history, and the approval by Sanlam shareholders of a package of Broad-based Black Economic Empowerment (B-BBEE) transactions that will position the Group well for accelerated growth in its South African home market.

Operational results for 2018 included 14% growth in the value of new life insurance business (VNB) on a consistent economic basis and more than R2 billion in positive experience variances, testimony to Sanlam’s resilience in difficult times.

The Group relies on its federal operating model and diversified profile in dealing with the challenging operating environment, negative investment markets and volatile currencies. Management continues to focus on growing existing operations and extracting value from recent corporate transactions to drive enhanced future growth.

The negative investment market returns and higher interest rates in a number of markets where the Group operates had a negative impact on growth in operating earnings and some other key performance indicators. This was aggravated by weak economic growth in South Africa and Namibia and internal currency devaluations in Angola, Nigeria and Zimbabwe.

Substantial growth in Santam’s operating earnings (net result from financial services) and satisfactory growth by Sanlam Emerging Markets (SEM) and Sanlam Corporate offset softer contributions from Sanlam Personal Finance (SPF) and Sanlam Investment Group (SIG).

Key features of the 2018 annual results include:

Net result from financial services increased by 4% compared to the same period in 2017;

Net value of new covered business up 8% to R2 billion (up 14% on a consistent economic basis);

Net fund inflows of R42 billion compared to R37 billion in 2017;

Adjusted Return on Group Equity Value per share of 19.4% exceeded the target of 13.0%; and

Dividend per share of 312 cents, up 8%.

Sanlam Group Chief Executive Officer, Mr Ian Kirk said: “We are satisfied with our performance in a challenging operating environment. We will continue to focus on managing operations prudently and diligently executing on our strategy to deliver sustainable value to all our stakeholders. The integration of SAHAM Finances is progressing well. In addition, Sanlam shareholders approved the package of B-BBEE transactions, including an equity raising, at the extraordinary general meeting held on 12 December 2018. Our plan to implement these transactions this year remains on track.”

Sanlam Personal Finance (SPF) net result from financial services declined by 5%, largely due to the impact of new growth initiatives and dampened market conditions. Excluding the new initiatives, SPF’s contribution was 1% down on 2017 due to the major impact that the weak equity market performance in South Africa had on fund-based fee income.

SPF’s new business sales increased by 4%, an overall satisfactory result under challenging conditions. Sanlam Sky’s new business increased by an exceptional 71%. Strong growth of 13% in the traditional individual life channel was augmented by the Capitec Bank credit life new business recognised in the first half of 2018, and strong demand for the new Capitec Bank funeral product. The Recurring premium and Strategic Business Development business units also achieved strong growth of 20%, supported by the acquisition of BrightRock in 2017. Glacier new business grew marginally by 1%. Primary sales onto the Linked Investment Service Provider (LISP) platform improved by 5%, an acceptable result given the pressure on investor confidence in the mass affluent market. This was however, offset by lower sales of wrap funds and traditional life products.

The strong growth in new business volumes at Sanlam Sky had a major positive effect on SPF’s VNB growth, which increased by 7% (14% on a comparable basis).

Sanlam Emerging Markets (SEM) grew its net result from financial services by 14%. Excluding the impact of corporate activity, earnings were marginally up on 2017 (up 8% excluding the increased new business strain).

New business volumes at SEM increased by 20%. Namibia performed well, increasing new business volumes by 22% despite weak economic conditions. Both life and investment new business grew strongly. Botswana underperformed with the main detractor from new business growth being the investment line of business, which declined by 24%. This line of business is historically more volatile in nature.

The new business growth in the Rest of Africa portfolio was 68% largely due to corporate activity relating to SAHAM Finances, with the East Africa portfolio underperforming.

The Indian insurance businesses continued to perform well, achieving double-digit growth in both life and general insurance in local currency. The Malaysian businesses are finding some traction after a period of underperformance, increasing their overall new business contribution by 3%. New business production is not yet meeting expectations, but the mix of business improved at both businesses.

SEM’s VNB declined by 3% (up 6% on a consistent economic basis and excluding corporate activity). The relatively low growth on a comparable basis is largely attributable to the new business underperformance in East Africa.

Sanlam Investment Group’s (SIG) overall net result from financial services declined by 6%, attributable to lower performance fees at the third party asset manager in South Africa, administration costs incurred for system upgrades in the wealth management business and lower earnings from equity-backed financing transactions at Sanlam Specialised Finance. The other businesses did well to grow earnings, despite the pressure on funds under management due to lower investment markets.

New business volumes declined by 13% mainly due to market volatility and low investor confidence in South Africa. Institutional new inflows remained weak for the full year, while retail inflows also slowed down significantly after a more positive start to the year. The international businesses, UK, attracted strong new inflows (up 57%).

Sanlam Corporate’s net result from financial services increased by 4%, with the muted growth caused by a continuation of high group risk claims experience. Mortality and disability claims experience weakened further in the second half of the year, which is likely to require more rerating of premiums in 2019. The administration units turned profitable in 2018, a major achievement. The healthcare businesses reported satisfactory double-digit growth in earnings, while the Absa Consultants and Actuaries business made a pleasing contribution of R39 million.

New business volumes in life insurance more than doubled, reflecting an exceptional performance. Single premiums grew by 109%, while recurring premiums increased by a particularly satisfactory 56%.

The good growth in recurring and single premium business, combined with modelling improvements, supported a 64% (71% on a comparable economic basis) increase in the cluster’s VNB contribution.

Following a year of major catastrophe events in 2017, Santam experienced a relatively benign claims environment in 2018. Combined with acceptable growth in net earned premiums, it contributed to a 37% increase in gross result from financial services (41% after tax and non-controlling interest). The conventional insurance book achieved an underwriting margin of 9% in 2018 (6% in 2017).

As at 31 December 2018, discretionary capital amounted to a negative R3.7 billion before allowance for the planned B-BBEE share issuance. A number of capital management actions during 2018 affected the balance of available discretionary capital, including the US$1 billion (R13 billion) SAHAM Finances transaction. Cash proceeds from the B-BBEE share issuance will restore the discretionary capital portfolio to between R1 billion and R1.5 billion depending on the final issue price within the R74 to R86 price range approved by shareholders.

Looking forward, the Group said economic growth in South Africa would likely remain weak in the short to medium term future, and would continue to impact efforts to accelerate organic growth. The outlook for economic growth in other regions where the Group operates is more promising. Recent acquisitions such as the SAHAM transaction should also support operational performance going forward.

“We remain focused on executing our strategy. We are confident that we have the calibre of management and staff to prudently navigate the anticipated challenges going forward,” Mr Kirk concluded.

Details of the results for the 12 months ended 31 December 2018 are available at www.sanlam.com.