The latest principal to enter the Malaysian market with stakeholding is Suzuki Motor, which has just acquired 40% of Suzuki Malaysia Automobile, previously a DRB-Hicom company. Suzuki will pay RM 14 million for the 40% stake, and another 20% stake will be taken up by Japanese trading form Itochu, which will pay RM 7 million. The remaining 40% is held by DRB-Hicom.
“The proposed joint venture displays Suzuki’s strong commitment to strengthen its relationship with DRB-Hicom in the marketing, distribution and assembly of Suzuki vehicles in Malaysia and to widen its product range and models in Malaysia,” said DRB-Hicom in a statement.
The new JV will be complete by end Q1 2008, and will involve subscription of new ordinary shares of RM1.00 each in SMA. SMA will issue and allot a total of 21 million new ordinary shares of RM1.00 each in SMA, through an increase in issued and paid-up capital from RM14 million to RM35 million. DRB-Hicom is expected to realise an estimated gain of RM5.2 million from the Proposed Joint Venture based on SMAs audited financial statement for the financial year ended 31 March 2007.
This could mean faster time to market for new Suzuki products in Malaysia as well as perhaps better allocation of stock to reduce waiting times.
After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history. An avid electronic gadget aficionado as well as big-time coffee lover, he's also the executive producer of the Driven motoring TV programme.
What this means for Malaysians? Perhaps:
- More competitive pricing
- New models introduced more quickly, as mentioned above
- Better network management, training and growth
- Bigger A&P, PR & CRM budgets
- Better resale values for Suzukis (maybe, in time)
- Better parts stocking and availability (maybe)
- More sales and bigger market share for Suzuki in a couple of years
I believe they will try to emulate their success in India
Seems like the success of Swift is the key factor which attracts Suzuki Japan to grab a bigger share of the existing JV.
it means we get 3S services popping up nationwide
that is certainly good news. Hopefully means more competition in the automotive industry. Healthy competition esp.
LMAO
You guys are soooo naive. What was SMA doing before the Swift? APV. Fact is dudes, DRB sucks when it comes to trying to sell cars. Look at Chevy. Can’t even market Audi seriously! If DRB was a ship, its de-ballasting. They were really hoping to get control of Proton. God knows where its headed now. Wish them fair weather and clear horizon.
Current marketing jobs will be affected?
So the whole company is valued at 35 million? That’s quite cheap
hey bring cheap hayabusa lah
CHEAPER SWIFT PLEASE!!!!!!!!!!!!!!!!!!!!!!!!!!
I WANT TO BUY THE SPORT VERSION PULAK …
PLEASE PLEASE PLEASE
hopefully the quality control of their CKD will be improved…
me also want hayabusa lah…can install turbo and do wheelie at 300km/h