Cycle & Carriage Bintang Bhd is close to signing a superdealer agreement with Volkswagen Group Malaysia Sdn Bhd to distribute Volkswagen cars here in Malaysia. The deal will involve distributing CBU Volkswagen vehicles here and should be finalised end this month or early next month.
After that’s done with, sales should begin within the next three months, pending Volkswagen’s new strategy revamp is complete. Volkswagen has had to put it’s plans here in Malaysia on hold due to the National Automotive Policy’s new tax structures which made it’s cars uncompetitive.
On a side note, although Cycle & Carriage Bintang Bhd will be carrying out sales, marketing, promotions, and have showrooms for Volkswagen cars – basically do everything to sell the cars here, it will not have rights to import the cars. Importing rights are with the AP holders for Volkswagen, AutoStadt Asia Sdn Bhd, which were only recently awarded with the APs only in February 2006.
I am disappointed with this as it is similiar to the shake leg AP middlemen situation which existed back before the new National Automotive Policy was formed. The fact that AutoStadt Asia Sdn Bhd’s owners are the same people who own Emeritus Equities Sdn Bhd who lost their rice bowl when the government stopped giving them Kleemann APs gives you more reason to be suspicious. If you want to know who the owners are, click here. You will not be suprised.
The excuse the government gave for this middleman situation was a problem in the AP policy where public listed companies could not qualify for APs because they did not have the required amount of bumiputra shareholders even if they were bumiputra-controlled. As you all know, APs are for bumiputra companies only. This policy is not in effect anymore, and companies like DRB-HICOM have been able to get APs directly and not go through middlemen like West Star. Does anyone know whether Cycle & Carriage is predominantly bumiputra-controlled? I bet they’re not, hence the requirement for AutoStadt to even exist in the first place.
Ridiculous. Well, if Volkswagen cars are a hit in Malaysia, you can bet that helicopter dealers will be overjoyed.