Proton Edar has signed a new Master Dealership agreement with EON for the sale and service of Proton cars in Malaysia. The new agreement is to rationalise the sales and distribution network.
This new agreement will extend for a period of 5 years from the 1st of July 2009. Here are the terms and conditions of the new agreement:
- EON shall be entitled to maintain its existing forty (40) sales branches but shall reduce the same to thirty two (32) on or before 31 December 2010
- EON shall ensure that the said 32 sales branches are consolidated into 3S (sales, service and spare parts) centres on or before 31 December 2010
- EON shall be entitled to maintain its 32 service centres
- EON shall be entitled to relocate its sales and / or service branches subject to Proton Edar’s written approval
- EON shall be entitled to service or continue to service Mitsubishi marque cars until 31 December 2010
Take note that EON currently has sixty five (65) sales dealers and one hundred and fifty two (152) service dealers. It will have to rationalise its network to meet the conditions offered above. The last point in particular is quite interesting. It looks like Proton wants EON dealers to focus on selling Proton cars only.
With the signing of the new agreement, all EON sales and service dealers will undergo a migration process into the Proton Edar sales and service network with effect from 1 July 2009. Subsequent to the migration process, EON will no longer have any sub-dealers (sales & after sales) for Proton vehicles after 31 December 2009.
Under the consolidation exercise, EON dealers will migrate to Proton Edar within the next six months. During that period, EON’s sales and services dealers will be evaluated on their performance, compliance and business ability. This exercise is to streamline the dealer network into a smaller and stronger dealer network.