This week’s copy of The Edge Weekly has a story on DRB-Hicom’s Euromobil subsidiary reportedly set to “lose” its Audi franchise in Malaysia, with distribution slated to be taken over instead by a new “Audi Malaysia” principal company. Euromobil has been the exclusive distributor for the marque here since February 2010.
The headline may have a somewhat negative tone to it, but things like this have had a history of happening in Malaysia. If anything, it’s more of a sign of Audi wanting to put more focus to the Malaysian market, deciding to roll up its sleeves and be physically present here to grow the brand.
So, what’s likely to happen is a new “Audi Malaysia” company coming in to take over the distributor role, with Euromobil becoming a “master dealer.” Euromobil will still operate Audi dealerships, with the only question being how long it will have exclusivity of this.
The Audi A3 Sedan is the latest Audi launched by Euromobil
DRB-Hicom will also likely continue to import Audi cars in through its DRB-Hicom Auto Solutions company – DRB-Hicom Auto Solutions currently does the same for Volkswagen CBU cars, and so happens to assemble CKD Volkswagens as well through HICOM Automotive Manufacturers in Pekan, Pahang.
We’ve heard the rumours of an Audi Malaysia being set up for quite some time now, thanks to headhunters calling up auto industry folks to try to fill up key positions. Audi Malaysia – which the rumour mill says is set to make an official announcement on its arrival early next month – will be located at the same building as Volkswagen Group Malaysia in Bangsar.
The same thing happened to Auto Bavaria in the past – it switched roles from a distributor to a mega dealer for BMWs. Also, Kah Motor’s Honda distributorship was taken over by Honda Malaysia. The opposite can happen as well – Ford was run directly by Ford Malaysia, but the principal eventually decided to exit the Malaysian market, so distributorship was taken over by Sime Darby Auto ConneXion.
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As long as not run by Cronies, I’m ok with that!
…don’t be so sure about it, definitely they will still hold on to the money making AP for CBU models…. Which at this moment is the entire range…
AP for official distributor or maker is not same as AP use by non-official/non-principle/grey importer/pekema… not official must pay RM10k per AP(open)..official no need to pay AP(franchise)..u need to differentiate between those 2 APs. im already tired explaining this over n over..
Yes i know the difference between the two.. So by your logic the AP holder for the distributor is useless in terms of making money out of it? Just for an example why then NZ Wheels is still the AP holder for CBUs Mercedes Benz even though officially theres MBM? Weststar for Hondas, Chevrolets, Smart Car? Porches? Things might change now on who is the AP holders, and honestly i couldnt be bother anymore since they keep on saying the system is important to the survival of their cronies..
Whatever AP or so cal principal company, at the end still link to cronies group!
So call Honda Malaysia? Majority share (34%) still under HICOM!
So call Suzuki Malaysia? Majority share (40%) still under HICOM!
So call Ford Malaysia? Majority share still under Sime-Darby!
So call Mitsubishi Malaysia? Majority share (48%) still under HICOM!
The money still masuk, only different is put into pocket A to Pocket B.
yes that how it work..if official company dont bring in those spesific model. those open AP holder will bring those in..or maybe the trim of same model is different from official one, open AP holder will bring it in..those we call grey import car..all recond car are open AP car regardless who import…
i give u 1 example haval m4..if u say those AP RM10k + let say RM1k extra(coz GWM dont have AP). so if no AP price should be RM34K? china price cheapest about RM33k..so what bout other tax?
i’m sorry, DRB is AP holder and those import using DRB Hicom AP need to pay DRB… if you dont know dont pretend you know and said u r tired…
lol that open AP not Franchise AP..company who become dealer of particular brand obviously register n order official way..for those dont use official way use open AP n bypass official distributor/maker to import particular model dont offer officially or recond or brand that has no official present in boleh..Open AP oni contribute 10% of total sales of previous yr (eg last yr 655793 total sales, 65k of that will be open AP car for this yr)..most high volume seller car in boleh dont use open or franchise AP since most are boleh made not import one eg vios, city, almari,jazz, jazz hybrid, p1, p2..those AP king is within 65k onli..
rocky boy, bcoz now it is not run by ‘your’ cronies right.. 2×5
it’s always a good thing for the manufacturer to physically “present” in the market. at least it shows the commitment of the manufacturer, and the importance of the market to the manufacturer. who knows with this move more dealers will be set up?
To ensure success, Audi Malaysia should stay away from DRB. Nobody else to appoint as dealers kah? Stupid cronism.
Setting up Audi Malaysia then will put a few mat salleh here on expat package and ramp up the costs? Granted, with them around, you get to see the models launched quickly but sometimes you wonder if they really contribute to the bottom line, or its more of a wine and dine for them.
If a couple of “mat sallehs” do the job well, why not? You pay so much, do you want to deal with poor service and employees constantly giving excuses? I hope they chose their employees well.
As there will be no middle men, could we expect the prices to go lower?
Euromobil is still the dealer, so there is a middleman. I think this is more related to bringing in the cars, assembling them, and after sales service things like warranty.
Makes sense. Hopefully it will be closely related to VW Malaysia, maybe with shared (larger) spare part centres and perhaps combined SCs (2 brands sharing a workshop can make it more reasonable to have a SC everywhere). Audi’s are posher VW’s, so a mechanic that can do either can do the other too. Nissan and Renault share SC too, and I’m quite happy with that arrangement (especially good for the smaller brand).
That may be true of simpler Audi’s but Audi’s can also be mechanically more complex as many of them have the quattro AWD system. It’s also safe to say that they are potentially more advanced in their electrical systems because of having more features to link up to the control unit.
I won’t be surprised Audi SC’s do eventually appear alongside or as a part of VW SC’s though.
Actually, you kinda bring out a rather interesting point…
Well technically with many new Volkswagens being superbly over engineered (Its German!) and sharing tech with Audi, I’d say that may be a bonus, training the Vee-Dub boys to also be able to work on more advanced cars. It won’t be so bad, since technically the Q3 and Tiguan both appear with 4WD, just that the Q3 is badged as a quattro while the Tiguan is badged as a 4MOTION AWD system. Same with the Touareg and the Q7, 4MOTION against the quattro too.
I’d wager on a new Volkswagen Audi Group Malaysia being opened up. Clean up the mess of VGM, streamline parts stock (since many VW and Audis use similar parts), and finally consider bringing in Skoda. If they settle the DSG drama, with the clutch plates wearing out, all the aftersales quibbles, Skoda will move well.
Oh and for goodness sake, VW and Audi, please don’t market the DSG as an automatic. It is not. It is an automated manual. That’s why it has the hesitation like a manual. When you see the DSG as a manual without a 3rd pedal, it works brilliantly.
sudonano, unfortunately many countries still categorise DSG/DCT as automatic and VW all the while has the intent to replace conventional automatic transmission with DSG in small vehicles (except those vehicles with engine torque over 350Nm).
yeap, both audi’s & VW sharing mostly same chasis & platform esp the new MQB used by the VAG …used by even skodas & SEATs. if not mistaken even the SUVs are sharing same chasis/platform ( Tiguan & Q3/Q5 and toureg/Q7/Chayenne)
yup, its a manual and if u balance the throttle at incline/slopes for a Loong time, ur clutch will get fried. just like a manual, imagine using clutch/throttle to balance at slopesfor a loong time or even stand still at traffic jam. A recipe for a clutch burn out. Yeap, just inform/mkt it as a manual…its not a normal slush box.
quattro..Golf R haldex sys…more or less the same but Quattro sounds more premum & can charge more ; )
In Germany VW SC usually also carry the Audi logo, some Skoda and Seat too. Same for sales.
Those cars based on MQB are usually very similar, also in terms of additional features. I believe they use a different radio/GPS unit, but otherwise… Only that some options may be missing from VW.
In any case you could have mechanics trained for VW work on Audi with a bit of additional training, except for the quattro system. For such cases they may have a dedicated Audi mechanic who focuses on that sort of stuff.
Audi cars are nice but their service is really thrashy. I wonder who will become the new top dealer for Audi. Wearnes? Federal Auto? Tan Chong again?
The edge article mentioned the chances of DRB continuing to be a dealer is very slim.
I didn’t see much improvement when BMW Malaysia took over, the quality of the service centers and the 2-year warranties still suck.
VW Malaysia was the same, good marketing effort but subpar cards and service centers causing owners grief.
Honda Malaysia seems to be one of the better ones though, they improved specs significantly (remember base Civics from ~2002-3 which had zero airbags?) plus warranties have improved to the current 5-year unlimited mileage.
I wonder how Audi Malaysia will improve things. I wasn’t too impressed with Euromobil’s dealers so far. Let’s wait and see I guess.
so will they change the lansi audi salespeople or not? but tunggu dulu i better grab some AP for myself to import audi and open dealer also
You dun hv money they lansi lor, it’s not their fault
i go mercedes no problem…i will continue wear broken t shirt to buy car…
u need to change ur name from semi-value to over-value, then they will layan u. it’s not their fault, it’s ur name that’s the problem.
FYI. Semi-value is referring to Samy Vellu ;)
i only semi’s macai….but i respect him…name my account after him…beribu ribu tahniah semi berjaya
With this move, hopefully more dealers would be set up across the country. One of the reasons why there are far lesser Audis in Malaysia compared to BMWs and Merc’s is because those two brands have dealers in almost every state.
Currently, Audi does not even have any representatives in East Malaysia and in my opinion, it is due to Euromobil being not ambitious.
Let’s see how things unfold in the coming months. Hopefully, they will bring in more CKD models to lower costs too.
I tell you, this has to be the best news I have heard today after the disappointing pricing on the new A3.
Audi Malaysia, it makes sense really! BMW Group Malaysia, Mercedes Benz Malaysia and Honda Malaysia are 3 key examples why we should have the parent company with someone directly involved from the parent company itself on top. One of the biggest advantages of BMW, MBM having a German on top is that there is no nonsense down at the lower/middle management. Same with Honda’s Japanese running the top.
Based on my experience with BMW Malaysia and the dealings with BMW Malaysia directly for a rather big blunder on my car, I must say when BMW Malaysia directly found out about what nonsense one of their dealers had been doing with my unit, from delayed delivery for no reason, incorrect accessories installed, software systems not activated, paperwork errors etc, immediately the top German guys got in touch to apologise profusely, they really care. In contrast, with another imported brand that I shall not name here (it’s not so atas as BMW but still imported), where the parent company doesn’t run the show, but rather a franchise instead, basically I went through hell and back a few times dealing with the issues with my car. If you thought Volkswagen Aftersales was the only nasty one in this country, trust me this brand has proven itself to me that they are competing with VW then, and made me swear never to buy their products as long as the current franchise brings it in.
One of the big issues is that, when a franchise brings in, they can’t give a toss on the experience of owning the car. On the other hand, with parent companies, they actually are worried, cause they know that if you write a nasty letter to the parent company in its home country (i.e. direct to BMW in Germany or Honda in Japan for example), the first person to face the axe is the top management for being incompetent, and they’d probably sack the poor fella on top and get another German/Japanese to take over, as they are aware, once they screw up perception, that is it, people will not buy the brand. Franchise dealers can’t be bothered. Take SD’s now defunct Auto Italia or whatever it was called to import in Alfa Romeo. They couldn’t be bothered to improve brand presence and all. And at the end, when they can’t sell and the parent company doesn’t renew the license, they just dump the assets or convert in for another brand. And not to mention, the franchises have more than 1 brand to get $$$. So like in the case of SD, with BMW being their cash cow, they didn’t feel it too hard when Alfa flopped. Same with Naza too, with Chevy sales being slow as snails, they don’t feel it, cause they have Kia and Peugeot pumping money in like no tomorrow. Where else on the other hand, in a parent company, you only sell 1 brand. If no one wants to buy that brand, GG then.
It is long overdue for Audi to come into Malaysia as Audi Malaysia and no more Euromobil rubbish. Among the 3 German marques (BMW, Audi, MB), I have to say Euromobil has both a terrible sales team who are too, I would call it “arrogant” to layan people who don’t come in a Saville Row suit. This is unlike MB who still layan people regardless of what you wear, same with BMW. Heck, Jaguar and Land Rover, who sell far more expensive cars than Audi have a better sales team. Euromobil’s aftersales is also so-so, with the lack of dealers and growing number of Audis on the road.
Just look at BMW, MB and Honda, how they have grown in Malaysia. BMW sales are through the roof, MB is selling so many S classes that you have to wait 2 years for one, Honda is one of the most decent mainstream brand you can get. Audi is making some interesting cars like the A3 e-Tron, and their Avant wagons. All they need is a good company to run the show.
Yes I support your comments. Audi Germany should be the principle and jv with local conglomerate (back to SD) to run operations and sales here. They have a responsibility to market their cars and keep a good name unlike their parent company and the DSG issue. Too long the brand has been tossed about between different players, mostly cronies who just sit and receive monthly gaji not worried about sales targets while their sales personnel doubles up as little napoleons in their showrooms.
Even though a local company needs to be appointed as shareholder (according to govt requirement) at least the crony will not be in position to make critical decisions for the company.
Hoping also there will be local assembled A4s and A6s which should pull the price down and more showrooms throughout Klang Valley.
And, my friend Sudonano may swap his beemer for an Audi..
I might swap my Beemer for an A4 or A4 only if…
there is a 2.0T engine with S tronic wet clutch and quattro…
Till then I will stay RWD!!! Say no to FWD :p
if audi A3 can produce ckd in msia , is the to say bye bye to japan car T & H again , hoho~
No lah, if ckd price will reduce rm10k-rm15k only. Still expensive.
Ramai la budak BMW, VW, Honda Malaysia staff test market kat audi.. Mcm biasa otai akan amgkat kaki dulu.. Prepare for massive resignation .. Lol
Damn good profile margin of A1 where been priced similar to new A3 price.
Those luxury MINI /SMALL series hatch should price from ~150k
Audi is owned by VW. It makes good sense that Audi Malaysia maybe a part of VGM hence the name, Volkswagen group Malaysia.
The entire group will may come here sooner or later. That may include Seat and Skoda, making a its comeback. I am just sayin’
yes, one SEAT Alhambra for me…ie its a cheaper Sharan
book me for seat leon cupra.. the cheaper gti
book me for seat leon cupra.. the cheaper gti
I had a problem with my brand new Audi Q5 and Euromobil cannot do anything. I have to repeatedly escalate to Audi CEO in Ingolstat to get a replacement part. What Hicom DRB cares just to make money and they got a good brand which will sell by itself. So having Audi direct here would hopefully provide better customer service and Audi will have a change to listen to the customer directly.
I am a Q5 owner too, the pre-face lift version with 7 speed S Tronic. My unit had problem with one of its rear suspensions and I got it fixed during the first 15000KM service. What was your Q5’s problem? Mind to share?
I had two major problems with my Q5 after 6 months in use, (1) paint peel off surrounding the two pair of sensor at from bumper and knocking sound at rear boot. The knocking problem they fixed it with a foam cushioning two molded part and it looks ugly. While the paint peel off they replace the front bumber after escalation. Even with the new bumper i notice blister now. Audi claimed the paint peel off due to weather in Penang! Funny right?
what’s the problem with your q5?
i have been waiting for this to happen since years back! really would love to see EM go as they sux big time seriously. not only did they not being aggressive in marketing the marvellous brand in MY, but they also did a very lousy job of handling the sales and services of Audi! felt so heartbreak to see the brand being handled so poorly by a bunch of er… (not gonna say the ‘I’ word). sigh.
really hope Audi will get involved directly and grow the brand in MY and SEA region.
Off topic a bit…seriously, what is it with DRB-HICOM’s top management and taking pictures in front of cars with the thumbs up sign…takde posing lain ke?
that’s normal practice but considering their bad reputation in automobile biz and always try to sort of connect themselves with the cars they sell they go too far, it looks like they believe they are the ones who built the car!!!
Finally we see the manufacturer taking control over the brand in Bolehland. Euromobil has done close to nothing to improve the Audi brand here and the after sales service network is so small and lousy!
The A3 hasn’t even made its official launch too!
Tetap masih mahal untuk jurutera mcm ak.
Hahaha…
this is the first crack in drb auto biz. I wish they lose VW and Honda also go back to sell rice. they killed proton and now karma getting back at them.
Great!
Give me Toyota Malaysia & Nissan Malaysia now, then we won’t have those G-spec w/o VSC & 2-year G17 delay nonsense… hopefully.
At least TC is improving, no? The new Nissan’s are rather well equipped, and it’s nice to see them put a little effort in Renault too.