It looks like Sapura Auto is exiting the business of selling BMWs and MINIs in Malaysia and are selling their showroom and land to Sime Darby Motor Division. A Bursa Malaysia filing popped up today detailing a Property Sale Agreement between Sime Darby Motor Division Sdn Bhd (which operates the Auto Bavaria dealerships) and Sapura Auto Sdn Bhd where the former will acquire a piece of freehold land together with the 3.5 year old showroom and aftersales facilities for RM49,054,503 cash.
It’s not a done deal yet of course as it is subject to the necessary approvals by the Prime Minister’s Department’s Economic Planning Unit and the shareholders of Sapura Resources Berhad. The transaction is expected to be complete by the end of this year.
Once done, Sapura’s sole Jalan Tun Razak showroom will become an Auto Bavaria showroom. Suddenly it makes sense why Auto Bavaria shut down and moved their Bukit Bintang showroom to Glenmarie earlier this year.
Source: Bursa Malaysia
so cheap?
So many good mechanics & service advisor ran from Auto Bav to Sapura years ago.
They must now be dreading being re-absorbed back to Auto Bav.
Dont worry. There are still 2 other BMW approved distributors to run to.
Hmmmm….. wonder why Sapura is getting out. They were so gung ho about it.
I true Fact MoToRiST!
i guess sapura want to concentrate on its core bus….oil & gas, defence, education….bmw dealership just a minor bus to the group
They were making losses.
Yea PauL but thy heLd functionz liKe nobodies business..!
@ sepang BMW is bettr known wit Sapura rather than AB
At a time when there were only 2 distributors (AB & Sapura), I find it had to believe they cant survive. Cartrade “ta pau” just before Sapura got the distributorship (I think).
Now there are 4 (AB, Ingress, Quill, Sapura) (well, going to be 3), so that means the market isnt big enough for so many distributors.
In which case, which of the other 2 (Ingress or Quill) will “ta pau” soon? My money is on Ingress (for the same reasons why Sapura “ta pau”).
Why not AB? Coz’ it’s the tai kor & has 49% share in BMW Malaysia
There are a few other small distributors such as Lee Motors up north.
aybe BMW sells their cars more expansively to other distributors just to makes sure they close shop?
Apologies Paul, my scenario is based on Klang Valley.
Ingress won some award at BMW Malaysia’s recent dealer event. I see tonnes of cars with Ingress plate holders so I don’t think Ingress will go down the same path as Sapura.
Sapura’s location was not ideal to start off with. It only serves people who live in Ampang and those who work there.
Ingress is located in a high-end residential suburb with only AB Glenmarie the other service centre closest. Quill PJ does not offer a service centre (theirs is in Puchong).
Paul, its a done deal. I called to fix an appointment to service and they (the receptionist) proudly said “oh we are not taking any cars anymore, we are closing business”.
The Prime Minister’s Department’s Economic Planning Unit and the shareholders of Sapura Resources Berhad gives a hoot for the dealership.
Its not “The transaction is expected to be complete by the end of this year” actually its ‘The TRANSITION is expected to progress up to the end of this year’.
car business not so easy bro
Yep, tell that to the morons sitting in the top management of that dealership.
That piece of land is worth a lot more per sq feet when Sime Darby turns it into a high end apartment in the KLCC area…no?
I don’t know why people want to live in that area with all the traffic jams. Elite it may be, but it’s hair-pulling frustrating just to get there!
>.< not a good news
Seems like a combination going against another giant car distributor N in automobile industry…..first Porsche…now BMW….whats next??
Yeah.. Sapura not really efficient in selling car.. more to oil and gas industry in sarawak..
AutoBavaria is the best.. cause if u buy bmw from them they have many SC and when u own a bmw Service centre is very important :D..
in fact.. Performance motor is owned by sime darby which makes it a sister company in sg :D..
Auto bavaria is doing good :D.. the sales and management is good, just tat in some state they need to increase the market just to bring in a SC.. and just for the reason(not having an SC in the area) ppl will not buy bmw (some of course)
new 5 series.. wuhu.. Rm3XXK, really affordable (i mean to those with 8K income per month) better than buying any other import cars (cause they provide free service for 3(or is it 5 years) years. and warranty.. GREAT!! :P
RM8k monthly income to buy a 5-series. You must be joking! I think a Honda City would be the right car to purchase at that income level.
All BMWs sold by any dealer in Malaysia can be serviced at any other dealer so that is not the reason why people only buy from AB.
Yup. You need to PAY 6k to 8k monthly to drive a 5 series at a reasonable loan length. Not earn 8k monthly.
He has a good basis up there, a friend of mine with a salary of RM3000 can buy the new 3-series. Dunno what he ate, maybe roti cream crackers and air kosong. Hohohoho.
Rule of 1/3 ……..base on paul comment you need at least to earn 18K/mth to own
5 series…..wonder why so many 5 series OTR…
most of the bmw and mercedes in malaysia are actually 2nd hand , ie recond. they are not brand new cars. thats why u can see so many luxury car on the road.
Ben, do you actually have a BMW X5?
or a Honda EX-5?
Hahaha…I’m only joking….no offense intended
8k should be lancer, civic, altis range la. must b a real kiamsiap if u buy city when u earn 8k :P . just my 2cents
are you kidding? honda city only 80k~90k, a fish told me his friend income less than 2k/monthly also can afford
Ben X5, where you learn maths from la?
Still got 2k balance wat !!
Eat ikan bilis and boil eggs everyday with wife and kids
Park the car at home to save gas , take Honda.. Honda C70
“Ada gaya enuff, mati tak apa” – isnt that the general norm of what Malaysians are doing out there ?
income 8k can buy bmw???joking ?…year 2000 3/4th hand maybe but will suffer maintenance….at rm8k monthly, just stick to p1 or p2…maybe city/vios/forte
why cannot buy bmw with 8k salary ?
the latest 320 from naza is less than 200k.
take a 170k loan at 2% interest , 7 years.
monthly repayment is 2.4k.
Auto Bavaria WAS good, untill their top performers were pinched by the new dealers. It will take them another 5 – 10 years to retrain the rookies there. Nevertheless I still like Auto Bavaria, they are the ones whom started the brand here.
another closure. only the big and mighty survives here
nah, monthly pay of RM2.5k can get City already.
BMW5 series monthly payment itself is RM3-4k a month. So, unless you’re paying a huge downpayment, dont think you can get a 5er for a monthly pay less than RM10k or so
The main issue here is Sapura and not how much you earn !!
Sapura is just not interested in running this business ,
they prefer easy money and not working hard.
The son is also “arrogant” cos he’s a richman’s son.
-Typical bumiputra company – same boat as Cartrade who
depends on AP and money to falling on their feet.
sorry but this is the truth – ask any BMW owner and they will
tell you of the amount of complaints + poor customer service.
Which explains what I said earlier
Quote “My money is on Ingress (for the same reasons why Sapura “ta pau”).”
I sometimes really wonder why some can spend so much on cars……it seem to be a very poor investment, depreciate instantly and high cost to maintain. 8K/mth even 80K/mth not the issue here.
well Martin ,
Most BMw/Merc’s are company cars esp at managerial levels
therefore everything is on co’s account inclu fuel & toll.
unlike the majority where up to 30-% of an “average joe’s” salary
goes to servicing their 9 year loan !!
Now they are even giving 100% 10 year loans to govt and graduates
Good luck!!
Martin, it’s Maslow’s Hierarchy of Needs. On the top is self realization. Next floor down is Self-Esteem. Respect by Others to be more precise. Material gains gives them a shortcut to this.
Nope, its not an Asian thang.
actually car just for show off not investment
Sam, “show-off” may be to you. Investment no way, no Tom, Dick & Harry will thing a car as an investment.
Those who choose BMW, Audi, VW and alike are mainly looking for life insurance on the road if not JOY.
It is very apparent you have never sat or driven in any of the above cars. Stick to your Proton, Honda and Camry. You can find them in MotorTrader.
Motorist ,
the main reason Cartrade was booted out was that they were
using recycled AP’s and all their cars were stuck at Johore Port ,
same reason why they were booted out of VW again on AP issues and
w/o following protocol.
where else in Sapura they are just not interested in running the business.
If you cannot get the numbers,then you ship -out.
I doubt if Ingress will follow the same path as they are an automotive co.
with a proven track record – parts etc. – not to booast their ego but their
staff there -technical & after sales svc is better than AB.
You are ablutely right Mpower about Cartrade. The CEO and his left hand man / right hand man are a bunch of… The CEO’s son, Sapura Auto MD and the Sepang chairman has the same mentality….wasting their fathers money.
so what happen to the staffs? i heard sime dary gonna bring in Porche to KL jln tun razak is that true????
I hope SD dont bring Porche to this spot, its a waste of prime spot to advertise a car that hardly need selling. I mean this car sells itself no matter where you put the showroom as the market is very small.
SD best retain BMW, MINI and Motorcycle there, turn it into a clubhouse or a hub for BMW. Minimize After Sales to fast service only. I quick coffee, mingle with the staff and out of there in an hour. Taxi off the major repairs to Sungai Besi. I find parking there a headache.esi.
Interesting to read all the comments here. Its true, a massive disappointment to many of those who migrated from AB. This news even rattled Ingress Auto and Quill much to BMW Malaysia’s embarrassment being incapable to support their dealerships.
Its true what Paul said, they were making losses. I had an opportunity to extract some inside information. It seems the problem was more inward the management then the market.
The top 5 flaws in Sapura Auto and most of the company he held was said to be:
1. High overheads (+ over paid sloppy directors)
2. Unjustifiable expenditures (boros)
3. Top manager’s who have no experience in running a dealership, yet arrogant enough to ridicule points introduced from those who do have some.
4. Slow in responding to Sales initiatives
5. Poor cash flow and authority limits
6. More arrogance to admit their flaws
Auto Bavaria is not the party in buying Sapura Auto. The purchase was initiated and executed by Sime Darby Property. But rest assured SA will be handed over to their motor group, which of course might want to change the name back to Auto Bavaria.
I heard about the the boss being a compulsive spender and has been a pain in the you know where to the manager’s there to manage.
Furthermore, you cant blame BMW Mal., for not saving the dealership as you said, they are a bunch of arrogant leaders.
While the board of directors’ high-five each other for the sale at 49 million, the employees think there is no real profit. Even if they claim as businessmen to have developed a piece of land, erected a building, created a brand and opened a market. The subsequent operating cost and employee settlement will take up any remaining margin if not more. Sime Darby is probably laughing their head off for these suckers.
What they failed to realize is that they are also messing with people’s lives. Enticed them to join the company, many trusted them (him) and left their good companies with great background and good futures and yearly bonuses to join him. Yet he had no remorse to push them all into the lions den, as many see it.
But rest assured his expectation may fall short. While he chokes on the wealth he created, Sime Darby is going to turn this place around. They are the most eligible company in Asia to come to the rescue. With half a dozen subsidiaries in Malaysia, Singapore, Hong Kong, New Zealand and elsewhere in the world, this dealership will be nursed to health. Contrary to BMW Mal’s plan to break AB’s back-bone by appointing more dealers.
See AB had a grip on the market and pretty much had VETO power over BMW’s decisions. Germans being Germans don’t like this. Thanks to AFTA Sime Darby had to bent over for them, after struggling to create the brand for the pass 20 years.
The staff should be happy, that if they can accept the offer they can anticipate annual bonus, better medical benefits, dealing with people whom know the business, compassionate and understanding bosses, half a dozen employee social activities, a good increment based on performance to those who produce results. Not like the current where only the porcupine gets it.
About Sime Darby I agree, give them rocks and they will turn it into diamonds.
If you look in todays TheSun, Sime Darby had smashed the diamonds to smithereens. Their GCE has been asked to take a vacation, while they check the massive cost overrun ….Oh by just about RM 964 Million!
i think at the end of d day common sense will prevail, if INgress also ta pau over next 2 yrs then maybe BMW Mal has got its strategy wrong..suspect tht the increase in no of dealers far outweigh the increase in the mkt size..result to throwing prices (good for us consumers anyway) but really it isnt sustainable for small player like SA, INgress or even Quill..even if these players survive, their delaership cud well be subsidized by other biz (throwing good money after bad). i think this is good deal for both SA and SD, afterall for SD rather than having billions in FD might as well start buying strategic properties..
I was working there, they just blame discounting by other dealers, their overheads too high, they have all kinds of directors at the end of the day they can’t sell cars! Their costs alone exceed 1 million a month! What’s wrong with these guys. Bumi boleh!
Hi, I am new here so this is my first post. I work in the auto industry so below are my two sens.
Personally I would not bother about Sime Darby Motor group. It is a very poorly managed company with a reputation for screwing up all the car brands represented by them – Ford, Innokom-Hyundai, Alfa Romeo, Land Rover, except maybe BMW.
The company does not have much good leaders and is rife with very unhealthy with politics. Morale among staff is very low too.
Ford Malaysia was formerly a JV with Sime Darby – Ford has given up hope on Malaysia and has since pulled out of Malaysia and franchise for Ford is now fully controlled by SimeDarby AutoConnexion. Ford is still as messed up as ever.
Hyundai (and its CKD brand Innokom) is going from bad to worse with very complicated arrangements between Hyundai Malaysia and Hyundai SimeDarby (Hyundai brand is represented by two companies – it’s very messy).
Alfa Romeo, through its AutoItalia, is pretty much dead. So is Land Rover.
BMW Malaysia is a JV with SimeDarby and its probably the only performing one. But much of the profit goes back to BMW AG.
SimeDarby does own AutoBavaria BMW dealerships. However it is losing a lot of staff to new BMW dealers like Sapura Auto and Ingress as AB is just as messed up and it is only doing well so far because of the BMW brand. Even BMW Malaysia believes AB has been too complacent which is why it intends to encourage more competition from newer BMW dealers.
And also, if you work under SimeDarby, there is no chance for you moving to BMW Malaysia as they both have an agreement not to poach each other’s staff.
The automotive industry in Malaysia is not a very good place to build your career as the market is very small, too much government intervention and you know the reasons for this la bla bla bla.
Only go in if you are really passionate about it, and if that is the case I would recommend that you start with UMW Toyota or Honda Malaysia. Being Japanese, work is long and hard and you will suffer a lot, maybe even abused. But you will learn much. It is not a company you can work for the rest of your life but its a good building ground.
You are right F10. BMW got their stratergies screwed. They came to pluck the fruits from the hardwork AB did in planting the brand in Malaysia the last 20 years.
In return they put sand on the plate of the very company that setup the market for them. BMW will eventually tapau and go back as SB has been doing well with BMW. SD can do better without them. The next dealer to tapau will mostlikely be Quill and that one up north. The amount of nonsense a dealer have to invest is redicolous.
Ingress Auto may outrun the rest as I see they are more modern, opened mindset and people oriented. I must hand it to them, they should be the next importer should BMW tapau.
now the game will be more interesting if DRB Hicom plan their Audi masterplan correctly – CKD, more service centres, open Audi Used Cars Centre (to manage the ridiculous 2nd hand prices of Audi compared to Merc and BMW)..then Audi will be a serious threat to Merc and BMW..then small BMW & Merc dealers may face bigger problem.
then hopefully we all can get better value for merc, bmw or audi :)
anasir – i doubt INgress can outlive SD in BMW biz though as SD has big stake in BMW Msia.
Agree again F10, I am of the same opinion. I hope DRB has better judgment then Auto Dunia or the importer before them. They have been warming their chairs with one or two outlets all their lives. Not knowing that a propher setup and network of Audi can give BMW and Merc the run for the money. They have wasted many good years in expanding the brand. And the good MD there agreed to mark-up parts prices up to 150% to cover their overheads – at the expense of their loyal customers!!.
hmmm… What a disaster for those who are there…
And for the Owners.. ha ha ha… still smiling, coz got back the money invested.
May be from biz point of view, clever. But by playing wt peoples life…. hmmm…
Compensation alone is not enaough, unless its enough to start a biz.Its not easy to find job now days.
being ex-AB and ex-Sapura Auto, nothing I can comment except gud luck to my colleague in Sapura Auto
i think i really have strong confidence as ingress auto will
sure can maintain their reputation as now, cos i,m from other
division subsidiaries i know their will, with already strong
background in automotive and have some
Japanese system + many subsidaries thailand, indonesia, india.
they will not easily goin to taupau
ingress auto may be able to maintain but the real question is at what price? could it be that other business is subsidizing the dealership? can the amt invested in BMW dealership generate better return if it’s invested in their other business for example? only they know it..and time will tell
i was told that even AB (the market leader with economies of scale) not making money as they used to now so it will be interesting to see how IA and Quill can fight AB especially knowing Sime also has stakes in BMW Msia.
Thanks to all on the comments on SA leaving the auto business. It shed some lights to me on BMW dealership and the Malaysian scenarios in car business. I am not from the industry and do not know much abt dealership business.
I just want to share my bad experience with SA and BMW. However, I still keep the car because it is still under warranty period and some more difficult to sell. I purchased a brand new BMW from SA in Jan 2009. Unluckily I got a defecet product. To summarize it, in average for every 2,000 KM (2 months) I have to send the car back to SA for repair due to continuous problem. Even though it is not a mechanical-related problem, it is disgusting me. I have a tight working schedule and frequently travelling abroad. The probelm with the car frustrated me. i am disillusion and lost my trust on BMW due to SA poor aftersales support especially their techician are (generally speaking) not competent. After fixing one part it causes another problem. (Later,I was told by a leaving senior technician then that he was not treated well and fairly despite the sound good branding.)
I wrote several complaint letters to SA as well as BMW, have a meeting with Mohar, Chead and other directors at SA. (One of you are right when you said that they have many expensive directors but doing nothing). They do not admit that they sold a devective product to me. As usual, errogant lot do not want to hear customer voice.
I thought I want to pursue to BMW German after Rausch replied my letter with the same voice as SA did. But I was so bz… I CURSE them DAY and NIGHT everytime my car making noice like a rattling snake. Stop sending my car to SA, instead I am frequenting INgress for service etc.
Now God answered my prayers. Serve them right.