Tan Chong buys majority stake in Nissan Vietnam

Tan Chong buys majority stake in Nissan VietnamSelling Nissan cars is a profitable business for the Tan Chong Group, and the company has made a move that will see it expand greatly in fast growing Indochina, which has a combined population of 107 million and GDP of US$109 billion (2009 figures).

ETCM (V) Pte Ltd, a wholly owned subsidiary of Tan Chong Motor Holdings Bhd, has entered into a capital assignment agreement to acquire 74% charter capital contribution in Nissan Vietnam Co Ltd. For that, ETCM will pay Denmark-based Kjaer Group A/S US$7.4 million cash.

With that, the terms of a joint venture agreement entered by Nissan and Kjaer in October 2008 will be amended, and ETCM will replace Kjaer as the largest share capital holder in Nissan Vietnam. The remaining 26% is held by Nissan. ETCM will manage Nissan Vietnam with the Japanese carmaker in a JV agreement.

“The proposed joint venture is a testimony of business co-operation between Tan Chong Motor Group and Nissan Motor to further expand the Nissan franchise in a key Asean emerging market,” the company said in a statement.

Source

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Anti Proton on Sep 23, 2010 at 1:41 am

    damn i hate tan chong

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    • RadzLee on Sep 23, 2010 at 9:01 am

      y is that?

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      • tan chong malaysia is famous for bringing the old nissan vehicle into malaysia
        currently only grand livina is the latest model, other are old and outdated

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        • Nissan X-Trail is the latest.

          Hopefully the current JDM Serena will replace our Serena soon. Kill the Estima please.

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  • maybe in the future they will start re-badge and then become car maker

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  • campro on Sep 23, 2010 at 2:16 am

    TC bring all nissan to m’sia is a poor grad car…cut cost until apa pun tak ada…

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  • azrai on Sep 23, 2010 at 8:07 am

    After a family tussle before Tan Chong emerge as strong lady now. I really hope they can make parts and using vendor in Malaysia to export to Vietnam plant so it can help money flow into Malaysia, and not vice versa.

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  • Outdoor Person on Sep 23, 2010 at 8:18 am

    Azrai,

    Seriously dude, if u were a business man would u do that taking into consideration the labour wages are much cheaper compare to malaysia?

    Vietnam delegates has been actively attracting malaysian to vietnam to invest..Industry like printing, book making and even helmet producers has been intrigue by their offer..

    I guess it would be wiser for them to shift some production operation there.

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  • littlefire on Sep 23, 2010 at 8:49 am

    That why TanChong share rose up so high these few days until over 6.00… Now already confirm that this is the cause…

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  • Jimmy on Sep 23, 2010 at 9:04 am

    A company with little marketing skill, WILL NOT SUCCEED.

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  • Jimmy on Sep 23, 2010 at 9:05 am

    Please audit the marketing department ya Tan Chong.

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  • Pitty the vietnam’s cosumer market, just look at what TC has done to Nissan in MY, blood sucker…….

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  • nighttrain on Sep 23, 2010 at 11:41 am

    Sad, ugly cars are ready to invade Indochina… isn’t there anything a little exciting from Nissan in the small sedan segmgnts?

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  • Jimmy: And I assume you’re saying that the marketing people in Toyota/Honda are superb? Do you even work in any automotive company before making that statement? I have been in 2 companies and I can tell you that you will be surprised that the top non-local players are riding on their PAST marketing strategies (20-30 years back). What notable marketing strategies from any of these players can you remember? None, right? Thought so…..

    So I think it is unfair only TC has to audit their marketing dept.

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    • autojohndoe on Sep 23, 2010 at 8:04 pm

      this jimmy guy maybe has something with toyota… his comments always favor toyota…

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  • nighttrain on Sep 23, 2010 at 12:45 pm

    bring in Nissan Juke la.. put in a lil bit of excitement to the lineup.

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  • Here only a copule of the “car dealers” been give the easy hand. the rest just hv to be thier own. ie 1 Company/owner can be so many car dealer in the same time? SO for TC they better off put more time in others market then here.

    So I always think we should hv a Open market for Automotive. Good for the dealer & end user.

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  • 3 main problems with N TC
    – some of the ‘customer service’ staff at service center must go through thorough customer service course
    – location and outlook of premise has to be upgraded, Mitsubihi has overtaken TC in that sense with its modern looking facility for this
    – i must also be lucky to be told that my engine prob is the first of its kind and neither the technicians nor the computers plugged into car can tell what the heck is wrong with it after sending it in for 3-4 times

    —–sighhhh—— can cc Mr Ghosen on this??

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    • expanding to indochina now with millions in investment!
      tolonglar upgrade local service center also before you do that bolehka???

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  • altimi on Sep 25, 2010 at 1:16 pm

    Nissan, please take over Nissan dealership in Malaysia …..the time has come.

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