Audi confirmed to take over Malaysian franchise

audi-a6-hybrid-launch

Looks like the rumours were true – according to a number of reports, DRB-Hicom has confirmed that Audi is in the midst of taking over the Malaysian franchise from its subsidiary Euromobil, which had been the sole distributor for the four-ringed marque since February 2010.

In speaking to the press, DRB-Hicom’s senior group director of distribution and marketing Datuk Radzaif Mohamed said that the group has been informed of “the start of the transition” of local operations back to Audi, although no official handover date has been decided. He added that “some details still need to be ironed out.”

“DRB-Hicom and Audi have been in talks about this and I wouldn’t call it a loss or termination of distributorship but rather a transition for both companies,” said Radzaif. “It is up to Audi whether it wants to control the entire operations, which include wholesale, retail, import and after-sales service, or outsource some of the operations to DRB-Hicom.”

Audi_A8_facelift_Malaysia_002

The reports also stated that the Volkswagen showroom at Volkswagen Group Malaysia’s (VGM) headquarters in Bangsar, which had been under renovation for some time, will be reopened as Audi Malaysia’s office effective from today.

Radzaif said that it is a natural progression for the principal brand owner to establish an official entity in the country once the brand presence reaches a certain level. “If you look at the likes of BMW and Honda, it is only natural for the principal to now look at how else they can support the local market going forward.”

He also denied rumours of an acrimonious split between the two companies, saying that DRB-Hicom was always aware of Audi’s takeover plans and that it had always been “a matter of when.”

Audi_A3_Sedan_S_line_Malaysia_ 001

Radzaif added that the group is confident of retaining its dealership with Audi under the new arrangement. “We will continue to be a dealer and spend money to promote, market and build up the Audi brand,” he said.

Despite the step back, he stated that DRB-Hicom is unlikely to see a significant impact on its financials through this development, as the introduction of new models is expected to safeguard it from reduced wholesale margins. Euromobil has already introduced two new cars to the market this year – the facelifted A8 and the A3 Sedan – and is expected to launch a facelifted A6 and an all-new A4 next year.

Indeed, Radzaif claimed that the group takes a positive view on Audi’s takeover move, as it will allow Euromobil to focus on expanding its dealership network and relieve it of the burden of advertising and promotional spending, which will fall mostly under Audi Malaysia.

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • Are we going to see Audi on an aggressive expansion plan, especially to the East Malaysia? The brand is not going anywhere (pun intended) under DRB-Hicom so this maybe the jolt of life the Audi brand so desperately needed.

    Like or Dislike: Thumb up 24 Thumb down 3
    • Operation-Manager (Member) on Aug 08, 2014 at 8:59 pm

      Thanks mat salleh at VW get German HQ informed on sleeping DRB group where DOING NOTHING NO CONTIRBUTION to Audi msia development as they DO NOT KNOW HOW TO DO BUSINESS.

      The only thing msia know is TO TAX OTHERS & CONTROL OTHERS PRICING.

      Well-loved. Like or Dislike: Thumb up 77 Thumb down 9
      • fast5 on Aug 09, 2014 at 12:20 am

        Boleh land is way better then that…
        All the taxes also wont enough add R&D 1.7 billion somemore.
        Coming model will be more pricy, really thanks to Tun supporter.
        Bolehland monopoly the market price.

        Like or Dislike: Thumb up 23 Thumb down 3
      • Lpost on Aug 09, 2014 at 11:10 am

        Audi is a premium brand, to open many showroom is not visible as low volume sales. Drb did a good job and sales increased and audi group realise a opportunity in malaysia to expend more.

        Like or Dislike: Thumb up 14 Thumb down 33
        • my friend. almost 60% of all Audi cars in Malaysia are AP Grey import. I have full statistics and most of the services are dine by AO importers as DRN has no idea how to service the cars.

          Like or Dislike: Thumb up 23 Thumb down 1
          • Same L0rrr on Aug 11, 2014 at 11:32 am

            The best thing is: When Proton offer their dealership in oversea.

            The response from oversea is same as Harvinder replying to my friend Sam Loo: DON’T WANT!

            Like or Dislike: Thumb up 0 Thumb down 0
          • Same L0rrr on Aug 11, 2014 at 3:59 pm

            You can read all the lies but the truth is DRB lost the Audi franchise because they are utterly lazy. The DRB workers as well as the Euromobil staff are all ex Proton staff, lazy like hell.

            They believe in going for 7 tea breaks throughout the working day just to minum teh and makan kuih lapis.

            the German guys got fed up with the attitude of the Malaysian staff at DRB and Euromobil. So lazy, want to sleep all the time and always wanting government help.

            In office, instead of concentrating on their work, the Euromobil staff are looking at which awek they can kongkek. They are not working half the time. If they are not in the kantin relaxing, they are looking at all the awek kilang wanting to kongkek.

            The Germans saw this. No motivation in the staff. The staff also look half dead and everything they talk is about aking the government for help in their lives. No motivation to strive.

            So, DRB can issue all the press release disputing why they lost this distributorship, but we all know the truth. Go and see the Euromobil service centre, they are bunch of lazy clowns all waiting for government help in their lives.

            Like or Dislike: Thumb up 9 Thumb down 4
        • Aren’t BMW and Mercedes premium brands as well? The point of opening more showrooms is to create awareness of the brand, increase the volume of sales and provide better aftersales services to owners.

          Like or Dislike: Thumb up 3 Thumb down 1
          • Lpost on Aug 10, 2014 at 11:30 am

            Merc & bmw are establish brands for decades around the world. Just less than 10 yers audi has enhance their brand. The public acceptance of audi car in malaysia has increased in 5 yrs back. Drb just obtained dealership in 2010. Infiniti just got 1 showroom since 2011 & lexus just got 6 since 2007.

            Like or Dislike: Thumb up 8 Thumb down 3
    • Ah Beng supporter on Aug 08, 2014 at 9:13 pm

      Not point just go back to German.
      Proton is only needed in here.
      Proton Suprima and preve can smoke even Audi R8.

      Like or Dislike: Thumb up 16 Thumb down 70
      • Ah Lian on Aug 09, 2014 at 9:14 am

        I think you mean go back to GERMANY?

        Like or Dislike: Thumb up 7 Thumb down 2
        • Same L0rrr on Aug 10, 2014 at 1:35 am

          If you can’t afford Audi, you no need ask ppl go back Germany, you better don’t go out and save more money.

          And you only need Proton, but Proton fuel consumption and build quality will make you even poorer, how???

          With the noisy, powerless and hot engine, Proton Suprima and Preve definitely can smoke more chicken wings and hotdogs than Audi R8

          Like or Dislike: Thumb up 15 Thumb down 2
          • samelorstpd on Aug 11, 2014 at 4:50 am

            Same lorrr with his kork comment.

            Like or Dislike: Thumb up 1 Thumb down 1
          • Powerless engine?
            Civic, sylphy, altis all torque got below 205nm preve. Before you say it’s a turbo, so what, it’s much cheaper, And before you compare the price with US. please get back to real world. You dun buy car with outside prices.

            Like or Dislike: Thumb up 1 Thumb down 6
          • Same L0rrr on Aug 11, 2014 at 11:20 am

            Proton fanboys always syok sendiri with their torque figure, they forgot the Proton chassis is heavy as a gunung Tahan.

            Preve Premium 0-100km/h how fast? only 9.6s. Somemore it is a turbo. Proton should be ashame of it.

            Even our Prius C hybrid can do 10.5s (only 0.9s slower). It is 1.5 and has no turbo!

            Like or Dislike: Thumb up 4 Thumb down 6
      • Real Car on Aug 09, 2014 at 9:48 am

        Good to see this change albeit a small one. Let authentic car maker do their bit, instead of buta gaji to privileged

        Like or Dislike: Thumb up 8 Thumb down 0
      • blvcktint on Aug 10, 2014 at 5:23 am

        ah beng supporter ..come on man..just bash and trash that damn proton pleasee..you are just goin backward with supporting malaysian national car..Prontonton? really..real ah beng shud feel comfortable enough with toyotaasss…potatoss

        Like or Dislike: Thumb up 2 Thumb down 0
        • Ah Beng supporter on Aug 10, 2014 at 5:12 pm

          Buying Proton no AP tax and import tax.
          Audi changes Rakyat AP tax, import tax and excuses duty tax.
          Why Rakyat need to pay more? Audi just go back to their kampung play ball.
          Audi R8 eat Proton Suprima and preve DUST!!!!!

          Like or Dislike: Thumb up 0 Thumb down 7
  • Operation-Manager (Member) on Aug 08, 2014 at 8:33 pm

    VGM is coming to capture more market share.
    VW- more CKD at competitive price compared THN
    Audi- more cars below 180k price tag to join the war
    Merz- …soon…
    BMW- …soon…

    Passenger Car Jan-Jun’14 :
    Toyota: 37696, 12.7%
    Honda: 37203, 12.5%
    Nissan: 19075, 6.4%
    VW: 5402, 1.8%
    Mazda: 5115, 1.7%
    Hy/Inkm: 5054, 1.7%
    Kia: 4763, 1.6%
    Mitsu: 4496, 1.5%
    BMW: 3724, 1.3%
    MERC: 3371, 1.1%
    Peug: 3269, 1.1%
    Ford: 2853, 1.0%
    Suzuki: 2581, 0.9%
    ……

    Like or Dislike: Thumb up 27 Thumb down 3
    • badfren on Aug 08, 2014 at 9:37 pm

      Do you have data that how many are pre-register unit from vw?

      Like or Dislike: Thumb up 4 Thumb down 3
      • Simon Lim on Aug 09, 2014 at 9:13 am

        Those are MMA figures for newly registered cars, not pre-registered.

        Like or Dislike: Thumb up 1 Thumb down 1
        • fenzo60 on Aug 09, 2014 at 11:01 am

          Maa figure provided by distributor so inclusive pre reg! Apa la you, tak tahu then dont talk.

          Like or Dislike: Thumb up 7 Thumb down 2
          • Ah Beng supporter on Aug 09, 2014 at 3:26 pm

            Why you all so complicated.
            Who care Audi.
            Want new car just buy Proton.
            Where can find so must free item and rebate.
            How can Audi and others German compare.
            Proton king of road and RV.

            Like or Dislike: Thumb up 4 Thumb down 19
          • Ah Beng supporter on Aug 09, 2014 at 3:26 pm

            Why you all so complicated.
            Who care Audi.
            Want new car just buy Proton.
            Where can find so must free item and rebate.
            How can Audi and others German compare.
            Proton king of road and RV.

            Like or Dislike: Thumb up 1 Thumb down 15
          • Same L0rrr on Aug 10, 2014 at 1:42 am

            People buy Audi is because it is luxury and good. They don’t care about free items and rebate.

            People buy Proton because it is cheap. However, the build quality is even cheaper, that Proton need free items and rebate to keep customer.

            Does Proton free condom with their new car? because PROTECTION ALWAYS BEST!

            Like or Dislike: Thumb up 5 Thumb down 3
          • Fenzo so Pro on Aug 11, 2014 at 10:17 am

            MAA doesnt include Pre-Reg figure.
            MAA is strictly on new cars.

            JPJ data comes with the AP/pre-reg/Grey figures.

            dont ask, its my job to analyse it. i got both data MAA and JPJ. duhh

            Like or Dislike: Thumb up 0 Thumb down 0
        • Operation-Manager (Member) on Aug 09, 2014 at 2:12 pm

          Inokom tried to angaged more car manufacturers to assembly Inokom plant as very low new production order from Hyundai & Kia.

          As known in the past the Koreans always priced 20% lower than Japanese. After transformation successfully with new Nu engine developed under ex-Audi designer lead, Koreans now pricing to be similar to Japanese w/o attractive pricing

          Like or Dislike: Thumb up 4 Thumb down 1
    • Wow!! BMW sold more car than Merc in Malaysia!!

      Like or Dislike: Thumb up 10 Thumb down 5
      • xiper (Member) on Aug 09, 2014 at 1:50 am

        what is so surprise? BMW was selling more than Merc in many countries

        Like or Dislike: Thumb up 9 Thumb down 1
  • Ok now let’s hope Audi Malaysia would give better experience to Audi owners

    Like or Dislike: Thumb up 12 Thumb down 0
    • ilyJDM on Aug 09, 2014 at 2:36 pm

      Please Toyota and Nissan and Subaru also do the same…

      If not Malaysians will be cheated for life

      Like or Dislike: Thumb up 7 Thumb down 1
      • Ah Beng supporter on Aug 10, 2014 at 5:19 pm

        German brand and all Japan conti no needed here Proton real m’si a brand

        Proton never cheat Rakyat buy new technology. Always same engine because is nice Campro is good single tank can go whole m’sia.

        German and Japan conti go back to their kampung, selling lousy expensive.

        Proton cheap and global built quality.

        Like or Dislike: Thumb up 1 Thumb down 3
        • Same L0rrr on Aug 11, 2014 at 11:22 am

          1. Sendiri Cakap
          2. Sendiri Syok
          3. Sentiasa Rosak
          4. Sales Carnival
          5. Semakin Mahal

          Typical Proton and its fanboys

          Like or Dislike: Thumb up 1 Thumb down 2
  • Here's what I would call it... on Aug 08, 2014 at 8:51 pm

    Euromobil bungling of a well loved Marque.

    It’s about time that we open Audi up to other dealership. Audi’s name has been tainted by Euromobil with poor service and even poorer market savviness. I’ll gladly buy from other none Eon affiliated dealer.

    Like or Dislike: Thumb up 9 Thumb down 1
    • fenzo60 on Aug 09, 2014 at 11:05 am

      You think the mat salleh can improve the service ka? See how vgm handles their after sales. Audi malaysia is put vgm management so dont hope much different bro

      Like or Dislike: Thumb up 15 Thumb down 0
      • Here's what I would call it... on Aug 09, 2014 at 2:26 pm

        Guys,

        There’s a distinction between the franchise owner and the dealership. I’m talking about the dealership here. Dealership could always do more to make sure your in-store or service experience is up to par.

        With Audi AG on board (VGM), we now know at least if we ever got screwed, it won’t come from Euromobil:

        Previous model: Audi AG -> Euromobil (Franchise owner) -> Euromobil (dealership)

        Future model: Audi AG -> VGM -> Dealership X/Y/Z

        You do not get a conflict of interest scenario where complains to the dealership (Euromobil) is not fed to the Franchise owner (also Euromobil) and because the guy in the dealership has a directive straight from the same company to deal with all complains within the dealership, the complains actually never gets trickle up to VGM/Audi AG.

        Like or Dislike: Thumb up 7 Thumb down 2
    • Lpost on Aug 09, 2014 at 11:16 am

      VW malaysia give a bad experience to vw onwers. Bad afee sale service.

      Like or Dislike: Thumb up 7 Thumb down 2
  • protonfan on Aug 08, 2014 at 8:52 pm

    Its OK drb, you don’t need Audi . You still have the BMW of Asia – proton and land rover of India – Tata and useless plastic UK car – lotus hahah

    Like or Dislike: Thumb up 13 Thumb down 8
  • all new a4? first time I heard of this

    Like or Dislike: Thumb up 2 Thumb down 2
  • protonfan on Aug 08, 2014 at 8:55 pm

    Ohhhh also the Carlos goshn of bolehland hahhaha Dah Rugi Beb!

    Like or Dislike: Thumb up 0 Thumb down 0
  • ex-DRB Staff on Aug 08, 2014 at 9:17 pm

    Audi brand in MY is killed of by the poor after sales services. I hope past warranty will be honoured.

    Like or Dislike: Thumb up 9 Thumb down 1
  • sudonano (Member) on Aug 08, 2014 at 10:04 pm

    Bring out the fireworks, finally good riddance to Euromobil jokers. If at all, this has to be the best news to date for Audi. Euromobil had to be the worst thing that we got from DRB cause of the completely horrendous quality of sales team they had. In fact, I’d say it is easier to buy a Porsche than an Audi through Euromobil!

    As I said before, 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), 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.

    Good luck, Audi Malaysia, a subsidiary of Audi AG. Even though I am not the biggest fan of Audi cars (personally feel their steering setups are always too light, but their interiors are bespoke to a whole new level, especially the inlays!) I feel a stronger presence of Audi in Malaysia will really pressure BMW Malaysia to buck up their quality and specifications, we are already seeing some improvement with the recently launched X5 CKD. Also, it will give Mercedes a run for the money. As for the Jags, well Jaguar Malaysia will now realise they should try and compete with the F30 3er and the A4 and C Class with the upcoming XE, and fast…

    Basically, the introduction of Audi Malaysia will benefit everyone. Now, get on and bring in the RS6 Avant, okay?

    Like or Dislike: Thumb up 35 Thumb down 4
    • venven81 on Aug 09, 2014 at 8:19 am

      completely agreed with your points here! there’s no better news (on Audi) than this. DRB/EM, please get your hands out of here and go do what you’re best at doing. let the guys with “heart” for the cars run the show and hopefully there will be something exciting from Audi Malaysia soon.

      Like or Dislike: Thumb up 8 Thumb down 2
      • sudonano (Member) on Aug 09, 2014 at 2:19 pm

        Exactly…

        Now, what shall we suggest Audi Malaysia call themselves. Volkswagen Audi Group Malaysia?

        And also, need to get rid of the brand “Euromobil”. I’d reckon Just Audi Center with no Euromobil branding will be the best.

        Like or Dislike: Thumb up 3 Thumb down 2
  • Audi, please seriously improve your after-service infrastructure. The previous Audi distributor had made a mess of it in the past.
    Your car sales will automatically pick up and sky-rocket when this happens!

    Like or Dislike: Thumb up 2 Thumb down 4
  • Why nowadays Audi posts all start with Mahathir thumbs up picture?

    Like or Dislike: Thumb up 3 Thumb down 0
  • We all hope for the best from Audi Ag, not “indah khabar dari rupa” then will be “keluar mulut harimau, masuk mulut buaya”. I’m looking forward to see Audi Engineer and show them the design problem!

    Like or Dislike: Thumb up 1 Thumb down 4
  • Dahlan on Aug 09, 2014 at 12:28 am

    Let’ s hope Audi Malaysia will open some branches in East Malaysia.

    Let’s start with KK pls.

    Like or Dislike: Thumb up 4 Thumb down 1
  • I hope more dealers will get to sell Audi also. Sell it throughout Malaysia please. And CKD it if possible, don’t mind switching brands if price can be reduced

    Like or Dislike: Thumb up 2 Thumb down 0
  • west end boys on Aug 09, 2014 at 1:41 am

    What is mahatir doing there? Want to rebadge audi huh?

    Like or Dislike: Thumb up 6 Thumb down 4
    • cendol (Member) on Aug 09, 2014 at 12:37 pm

      His son’s company owns sole distributorship of Audi and Porsche

      Like or Dislike: Thumb up 8 Thumb down 0
    • Audi would not even say hi to them. who takes drb and proton seriously nowadays?

      Like or Dislike: Thumb up 0 Thumb down 1
  • presna (Member) on Aug 09, 2014 at 2:55 am

    Think you guys are getting way ahead of yourselves.

    DRB isn’t going to go anywhere away from Audi, sure Audi themselves would take a larger stake in the op in MY, but its still going to involved DRB to a large extent.

    You do realize the Gov isn’t likely to allow any change in the business landscape that would be bad for DRB, since it is a GLC.

    So if you’re cheering for perhaps better selection of cars or competitive pricing, that might be, but its still going to involve DRB.

    But here is an interesting thought, since Audi (and perhaps later on VW) is expanding their ops here is the old idea of VW group using excess capacity at P1’s factory or even a possible tie-up exists ??

    Like or Dislike: Thumb up 7 Thumb down 2
  • EvakOne on Aug 09, 2014 at 1:44 pm

    Gearbox problem settle already or not? knn… my A4 gearbox no realiable and my Sirroco 2.0 gearbox still sucks after 2 replacement

    Like or Dislike: Thumb up 5 Thumb down 3
  • labix7 on Aug 09, 2014 at 3:14 pm

    hope Audi not just to establish their brand only without improve the after sales service.

    Like or Dislike: Thumb up 2 Thumb down 0
  • A single Soul on Aug 09, 2014 at 4:50 pm

    Good news. the karma is getting back at drb-hicom for all the wrong they did to businesses in Malaysia and specially to all proton people and also the company. they killed the proton brand under their useless management styles and the curse of all the good people who either fired or lost their jobs under them is getting back at them. no one will forgive you specially their Ex-boss Lukman for all the torture he gave his staff and for all the futures he destroyed by firing his best people who are now working for other companies in Malaysia or China. shame shame. karma is getting back at each one of the drb bosses soon.

    Like or Dislike: Thumb up 12 Thumb down 0
    • spirior on Aug 10, 2014 at 8:17 pm

      Amen brotha. Still remember a DRB Hicom exec who boasted about how a single Audi sold is equivalent to selling hundreds of Sagas in terms of profit margin. Look at Proton now. No new products, no new engine, and horrifyingly, no new ideas from DRB Hicom execs who thinks they are Ghosns and Schreyers of Malaysia. Bah!

      Like or Dislike: Thumb up 7 Thumb down 0
      • GSC is coming, you said no new product?

        Like or Dislike: Thumb up 0 Thumb down 4
        • Superman on Aug 11, 2014 at 10:12 am

          GSC? it was designed almost 5 years ago and all of it is copied from ford, pugs or MyVis. with the same CamPro 1.3 L engine and all the cost cutting it will be lucky to sell 100 cars per month. we saw how Suprima did… pls open your eyes man,, we are not against Proton. we are all talking about the people who run it and all they think they are genius but they are not. all they did they hid behind the VW shadow but VW also recently declared to them not to associate themselves with them as they are only distributors and contract assemblers. no tech and no partnerships so now what they have to show?????

          Like or Dislike: Thumb up 5 Thumb down 0
      • a single Soul on Aug 11, 2014 at 10:14 am

        Agreed Bro.

        Like or Dislike: Thumb up 2 Thumb down 0
  • wow!, the A3 looks like the proton persona. Please dont bash me. welcome audi.

    Like or Dislike: Thumb up 1 Thumb down 3
  • myq5 (Member) on Aug 09, 2014 at 7:27 pm

    The unhappiness on service coming from high failure rate, disagreement to replace under warranty or and long waiting time for repair. It means they have high failure rate compared to competitors in Tropical countries. I was driving Audi A4 in Italy for a year, it was excellent car so I don’t have to go to service center.

    Like or Dislike: Thumb up 1 Thumb down 1
  • 7yearsfd1 on Aug 10, 2014 at 3:05 am

    Hookay lets move on to the important question

    Will it affect the Audi cars pricing?

    Like or Dislike: Thumb up 3 Thumb down 0
  • Rambo on Aug 10, 2014 at 12:16 pm

    DRB Hicom- still no Audi presence in east Malaysia after so many years.
    Is that a lack of ambition?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Semi-Value (Member) on Aug 10, 2014 at 3:47 pm

    tell u guys a secret…i got share in new ownership

    Like or Dislike: Thumb up 12 Thumb down 0
    • sumavulu on Aug 11, 2014 at 4:57 am

      Tell us more about what you have:

      1.Merselees
      2.Booked a luuxury car
      3.Got AP license
      4.Got stock in big companies

      I can laugh all day and night because your story is really cool. Beribu-ribu tania.

      Like or Dislike: Thumb up 6 Thumb down 0
      • Semi-Value (Member) on Aug 11, 2014 at 1:02 pm

        nak join me or not…i call sam loo join already

        Like or Dislike: Thumb up 9 Thumb down 0
  • I never trust this car, the quality and reliability is bad, I own one previously drive for 3 months sold it, as the gear box keep on jerking. It is one of the worse car I ever driven.

    Like or Dislike: Thumb up 0 Thumb down 0
    • Mr. Tech Guy on Aug 12, 2014 at 11:50 am

      A friend of mine bought his Audi A4 and after 3 years gearbox problem. Need to change the ECU and etc.. The cark was jerking heavily and the gear won’t shift past the 4th or 5th gear. Poor guy.

      Like or Dislike: Thumb up 0 Thumb down 0
 

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