TomTom to stay in SA

By Christelle du Toit, ITWeb senior journalist

Johannesburg, 20 May 2008

Dutch navigation company TomTom is not looking to exit the South African market, following its fall-out with key partner, the Core Group.

Based in Amsterdam, the company is opening "a dedicated South African organisation to further grow sales and expand market share in SA".

However, it did not say when it plans to do this.

Diederik Nederlof, VP for sales in SA, says the new office "is a direct result of the expanding global portable navigation devices industry and fast adaptation of navigation in SA".

This is in stark contrast to allegations levelled against TomTom by Core last week.

Core group director for navigation business RJ van Spaandonk said Core "had no choice [but] to terminate the relationship due to, inter alia, TomTom's inability to supply a competitive product range, and support it with appropriate marketing activities in Southern Africa".

Nederlof says: "The opening of our South African office is in line with our [TomTom's] global expansion strategy and enables us to fully focus on the needs and demands of our South African customers and retailers."

The new South African organisation is to be headed by Joost Jetten, regional manager for SA and the Middle East, who is negotiating to establish a new distributor relationship. Jetten will be based in SA, in contrast to TomTom's previous hands-off approach in the country.

"We have all confidence in our local organisation and strong product offering to continue to successfully grow our business in SA," Nederlof says.

The Core Group has declined any additional comment on its relationship with TomTom.