UMW Toyota (UMWT) aims to strengthen its retail operations in Malaysia. From January 2018, a majority of outlets that are currently owned and operated by UMWT will be transferred to existing Toyota dealers.
According to UMWT, this move will allow the company to add focus on high value added upstream activities such as product development, marketing and dealer network support. “It is essential for UMWT to continue achieving high customer satisfaction standards,” said UMWT president, Ravindran Kurusamy.
“I am extremely excited about working even more closely with our dealers to realise a shared vision for UMWT, which is to promise the concept of “Best In Town,” meaning a more focused one-to-one customer engagement. Although this arrangement signifies an important change for UMWT, our customers should rest assured that our service will not be compromised, and even get better in the future” he added.
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Study the model of MBM. They are good.
UMWT shifting into higher gear. New gen Camry and CHR.
New camry overpriced, CHR pipu dowan coz underpower
Big money will command a good service upfront.
Toyota takes No.1 spot JD Power 2017 Malaysia Customer Service Index.
Tired of price war with dealers
MBM sells cars mainly to people who wants to show off. Theirs sales did well by capturing sales from MB recon cars. Not great marketing.
Yes, good service is 1 part of a successful business strategy.
But your VALUE FOR MONEY, QUALITY & PRODUCT MIX are severely lacking.
Just surviving on past glory & Toyota brand name isn’t going to cut it anymore. Consumers are today we’ll informed, know what’s available regionally and globally & are smarter than the unkers you used to sell to. Under spec and over pricing is tantamount to cheating your customers.
Perhaps it’s better for Toyota Corporation to finally open a direct office here, just like what Honda did. Look at how successful they are.
If still in doubt, look at how badly Tan Chong is doing to Nissan. Local distributors are just killing the brand.
not new. the outlet in Shamelin Perkasa was handed over to Wing Hin group some 7-8 years back.
When you have a problem then you will know what is good service. The defective airbag for my camry is still pending after 18 months.
great effort on making changes since losing market share. Please do kindly provide better specs compare to your competitors
UMW….pls focus on price reduction with maximum specs,and bring in the latest range of Toyota cars.
With economic slowdown and loan tightening,I dont think many current dealers would want to absorb your branch operations.
Focus on customers getting maximum benefits/satisfaction from buying your cars…instead of just sending record profits back to PNB.
I’m quite happy with their Toyota aftersales service, especially the big ones. Probably the only reason I keep becoming their customer.
When you go to their 3S centres to service your car, especially on sundays, you get free makan also.
Not that I’m trying to be cheap for that free makan. But I don’t see that kind of consumer experience in other brand showrooms.
I remember staying in boarding school where government used to operate their own kitchen, food was good and aplenty. then one day they decided to privatize the kitchen, suddenly the food was rationed and tasted like sheet.
I worry this is going to happen to Toyota. Service quality by dealers will not be the same.
Service has always been good at dealers that i sent my car for srvice to. On weekends they have food too and better one when they have weekend events which can be quite frequent
Honda give free makan too, but why Honda was rated lowest in JD power survey while Toyota is no 1 for 2 years in a row?
there is so much to after sales quality criteria and not only to free makan or how long the warranty is. Location is one thing, easy to find parking, friendly service personnel, professional service advisors, efficient parts supply, job explanation before and after complete including costs.
something that companies like Honda and Volkswagen are not good at. (and Proton too)
Follow Honda all dealers concept?
Always wondered why UMWT had two different system in branch and dealers. Dont think it was efficient from the start.
the answer is – in the 80s and 90s car business was not as huge as today. and Proton was holding something like 70% of market share. The best UMW can do was set 1 branch for every state (of course Klang Valley had several more).
no one had the interest or knowledge to open a dealer outlet nor the fund.
times had changed though. Proton and Naza offered dealerships as part of their network expansion (lower capex and zero HR headache). Both companies gained huge from the sales of cars.
DRB too it up to another level with all dealer, zero branch though. first with Chevrolet, next was Honda. before that, Honda was handled by Kah Motor and there were no dealers as well but all branch.
Better consider all aspect before doing this.
Don’t be like Suzuki closing all the outlets thinking that they have found a partner that can rely on but now licking own wound.
Cut cost say cut cost la…..don’t spin it another way
UMW service center is the best quality service center so far.
nobody will believe dealer can maintain UMW management quality!
I had great experience at dealers too. Trust me, alot dont even notice if the outlet they go to belongs to who. Its all about the service
This is the way to go. Business is business. Let the dealers handle the downstream overhead costs. And UMWT sells vehicle to them with clean profit.
Why do they have two different systems?
No, not 2 but only 1 system. How they sell the cars and how they service, how much, where are the spare parts from. All using one system.
Product development? Meaning more body kits and stickers.
Great move UMWT.
There are always pros and cons whichever business model that is adopted. As car business is viewed to be more competitive and challenging in future, it is normal for any business to be as light weight as possible. But without your own branches, you have no control on your sales volume. You can press the dealers, but they can give you hell lots of excuse too. Maybe you think you can change them if they are not complying, but what if your product is viewed as not competitive. It is always a catch 22 thing. Talk is cheap but when you are at the seat, you may view things differently.
Tell me honestly, how many new Toyota cars are you seeing on the road these days? No one buy Toyota anymore. Old technology, severely underpowered cars. We are seeing more Honda cars and even VW cars in the midrange segment. Walk in to any second hand car dealers, they will tell you the trade in value for your Toyota is now very low as there is no demand for Toyota. The trend is shifting. They have so many unsold Toyota’s there, this the time you can get a second hand Toyota at a bargain, price has dropped considerably.
Smart Move, huge investment in RND and expansion of manufacturing plant done. Have the new rnd model & technologies ready, expanded production line ready to cater huge production. Is time to make a huge come back into the market. However next part of the comeback plan is on the retail part of the trade cycle which were their branches / outlets where expansion & upgrading of facilities required, change of new corporate image, revamp brand strength and many many other initiatives at the retail part of which requires another huge sump of investment. Besides that looking at such huge investment for the above plus huge operating cost at the retail line and huge cashflow / bank facilities interest involved to sustain the retail chain where else the margins in return from retail side may not be worthwhile partly also given most of their branches is on tenancy and not owned. Throwing huge investment by expanding and upgrading facilities on to someone else assets at approx 30++ outlets may deem not feasible. Might as well use the funds to make huge improvement at the controlling end (headquarter / principal level) and ensure their new dealerships meeting the standards that they want and will still works for them as retail margins from car sales, parts, accessories & etc. is still at their control.