Naza-Berjaya reportedly picked as new government vehicle fleet supplier, award to be announced in June

Naza-Berjaya reportedly picked as new government vehicle fleet supplier, award to be announced in June

According to The Star, the Naza-Berjaya consortium has apparently been chosen by the government as the new service provider that will supply, maintain and manage its fleet of official cars and police patrol vehicles. It is believed that the consortium has received the letter of intent from the finance ministry, with the actual award set to be announced by June.

The consortium is set to replace the current fleet management provider, Spanco, which has had the contract since 1994. Spanco is an independent fleet management company with two flagship service centres in Batu Caves and Bangi, and over 200 services centres across the country.

The need to appoint a new company comes after the 25-year government concession with Spanco came to an end in December 2018 – the company was then given an two extensions of six months each in 2019 to continue managing the fleet until the end of last year. The news report adds that it is believed that Spanco has been given another six-month extension to June, pending the award to the new concessionaire.

In February last year, the government called for proposals for the contract to supply, maintain and manage its fleet of official cars for the next 15 years. Proposals were reportedly received from at least seven companies for the new concession – aside from the Naza Group, other bidders include Berjaya Group, Sime Darby, DRB-Hicom, Samling Group, Comos and Go Auto as well as incumbent Spanco, which was aiming to retain its concession.

Naza-Berjaya reportedly picked as new government vehicle fleet supplier, award to be announced in June

While the size of the concession has yet to be revealed, it is estimated that based on the current fleet of 12,500 vehicles, the contract could be worth RM300 million a year from the fifth year onwards. The existing fleet, all leased from Spanco through a five-year replacement cycle arrangement, includes vehicles used by ministers and top civil servants, as well as police patrol vehicles.

Under the contract with Spanco, the end-to-end fleet management concession came with a five-year replacement cycle designed to ensure the government’s fleet stayed current, with the maintenance cost of each of these vehicles capped at pre-determined limits.

A source told the publication that the new concession holder will only start supplying new cars to the government to replace out-of-lease Spanco vehicles once they have finalised the award. However, even if a new concessionaire is appointed, Spanco will still be contracted to maintain and manage the cars leased by it and which are still in service until those are eventually replaced.

Apparently, Spanco supplied around 2,000 cars to the government over the past 12 months as replacements for vehicles that have reached their maximum five-year limit, and this includes around 500 Proton X70s delivered between December and January this year – the SUVs are now in use as official cars for the public sector’s super scale (Jusa) officers. Ministers, meanwhile, are apparently sticking with Protons.

Naza-Berjaya reportedly picked as new government vehicle fleet supplier, award to be announced in June

Government cars have traditionally been CKD cars (apart from the CBU X70s), so it’s likely this will involve new vehicles and not Naza’s grey import fleet. Usually, Jusa vehicles have been D-segment sedans, but have recently included C-segment SUVs – with the new contract, future CKD models could include the Kia Optima, the only CKD D-segment sedan in Naza-Berjaya range, as well as the Mazda CX-5.

The Kia Cerato could also be an eventual replacement for the current Preve. Elsewhere, while Naza holds the distributorship of a few brands, it also has dealers selling a lot of other brands too, including Mercedes-Benz, through NZ Wheels.

The Naza-Berjaya consortium has 20 brands of vehicles under its stable, including Kia, Peugeot and Mazda. In August last year, Naza Corp chief strategy officer Azrul Reza Aziz told the publication’s StarBiz that the Naza-Berjaya consortium would be able to extend competitive vehicle rental rates and help the government achieve cost efficiency through end-to-end offerings, thereby benefiting the government in terms of lower and manageable costs.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • blabla on Jan 28, 2020 at 2:12 pm

    when gomen proceed the ecrl, vincent tan bought cement company earlier

    when gomen proceed bike sharing, vincent tan bought degoride,

    when gomen open this car supplier tender, vincent-naza got it..

    berjaya-naza is wel known tun m cronies

    accidental?

    Well-loved. Like or Dislike: Thumb up 168 Thumb down 5
    • lilytan on Jan 28, 2020 at 2:30 pm

      Naza Group, and Berjaya under declared CKD tax.

      Like or Dislike: Thumb up 28 Thumb down 2
    • Government Review and Customer Alert on Jan 28, 2020 at 2:31 pm

      Before next cabinet meeting, raykat needs an urgent to readjust their planning. Please don’t buy so MANY 3000 ACCORDS. That’s not what the government is doing!!!!

      Moreover, Ministers and government will not enjoy for 15 years, you will have more frustrated for driving Honda Accord for using 1 year or lesser than. It is better to cancel order for 3000 Honda Accords and buy P2.

      Besides that, especially have to warn all of you that, Honda is not very safe all of you to drive. Quality and aftersales not good. Have to pay over ten thousands for repairing cost for going to workshop too often which they have to take office leave.

      Anyway so please to all ministers, if like that, we will not vote for PH for the next GE15 election.

      Well-loved. Like or Dislike: Thumb up 149 Thumb down 12
      • Apricot on Jan 28, 2020 at 5:04 pm

        Finish Honda Malaysia, this Bezza will steal sales from upcoming City Turbo without AEB, land departure warning and blind spot monitor. Salesman will start crying. So called as “Power of Nightmare Cars”

        As majority in Malaysia fed up of driving honda cars because too many quality issues on newer Honda models after bought for less than 1 year. When go to aftersales service, people also complaining most of the aftersales service dealer. Cannot solve. Shows that technicians are having half past six, lying, didn’t repair at all, never repair other peoples car at all.

        Yet, some of them are still buying Honda cars with brainless. Also, come here hating kimchi cars with low resale value and hating mazda. Just look at safety specs, most of Honda models are really kosong spec. Compare to Mazda, Toyota and Hyundai Ioniq comes with blind spot monitor, AEB, land departure warning and others. No wonder, many mazda CX-5 and Proton X70 everywhere than looking Honda CRV is now rare.

        Malaysians rather buy mazda. This comes with 5 years warranty as Honda. Bermaz service is better and they already improved their service than honda. Even CKD Mazda CX-5 looks so so but better than most Honda models. So Honda Malaysia is dead.

        Well-loved. Like or Dislike: Thumb up 205 Thumb down 19
        • Should just appoint Proton and Perodua to supply the gov fleet… X70, X50 dan Persona… and the more reliable Bezza, Myvi dan Perodua Rocky SUV… kereta Rakyat!

          Well-loved. Like or Dislike: Thumb up 79 Thumb down 4
        • Wilson Khoo Mario on Jan 28, 2020 at 6:47 pm

          Hidden due to lowcomment rating. Click here to see.

          Poorly-rated. Like or Dislike: Thumb up 20 Thumb down 136
          • Kunta Ravi Naidu on Jan 28, 2020 at 7:51 pm

            Kunta, Stop it with your hatred against Proton. Everyone are already sick and tired of you

            Like or Dislike: Thumb up 34 Thumb down 1
        • Apricot SUCK! on Jan 28, 2020 at 8:14 pm

          brainless

          Like or Dislike: Thumb up 1 Thumb down 5
        • Mazda can sell cars for the next 10 years in Malaysia also wont match what honda can sell in 1 year. Fat hope.

          Like or Dislike: Thumb up 0 Thumb down 0
    • lilytan on Jan 28, 2020 at 2:39 pm

      Hahaha. Cronyism at its worst. WSJ should do an article on this money trail also

      Well-loved. Like or Dislike: Thumb up 52 Thumb down 0
    • azrai on Jan 28, 2020 at 3:13 pm

      Meanwhile Kelantan State Government just bought for themselves a whopping 14 units of Merc. They bought it from Hap Seng. BMF?

      Like or Dislike: Thumb up 11 Thumb down 18
      • 1MDB Puas Hati on Jan 28, 2020 at 6:48 pm

        PAS is on BN side now. They won’t criticise BN or their allies.

        Like or Dislike: Thumb up 3 Thumb down 3
      • Amran on Jan 28, 2020 at 9:58 pm

        Kelantan State poorest & borrow frm Federal.

        Like or Dislike: Thumb up 10 Thumb down 5
      • Kelantan bought it via their oil royalty. Oops Madey recinded that since 1990. So siapa salah Kelantan is poorer than other states?

        Like or Dislike: Thumb up 17 Thumb down 3
    • Crony on Jan 29, 2020 at 1:24 am

      During his BN era, we have to be hidden by our Bapa Kroni Malaysia. Now he is king of PH, nobody can stop him so we can do our business in open because people voted for us. Thank you very much rakyat of Malaysia. he he he he he he….

      Like or Dislike: Thumb up 6 Thumb down 0
  • azrai on Jan 28, 2020 at 2:30 pm

    When the children of Naza and Berjaya married this is what they get.

    Well-loved. Like or Dislike: Thumb up 68 Thumb down 1
  • Bugatti Owner on Jan 28, 2020 at 2:36 pm

    They are my daddy’s close friends…

    Like or Dislike: Thumb up 31 Thumb down 1
  • alldisc on Jan 28, 2020 at 3:08 pm

    Well make sure the costs are really lower than spanco, which marked everything sky high.

    And make sure you don’t employ any of ex spanco management staff, which I came to know are pretty arrogant. Lower rankings staff are OK, especially those in operations.

    For those administrative personnel, they can just register with jobstreet.

    Like or Dislike: Thumb up 10 Thumb down 1
    • Lets See on Jan 29, 2020 at 10:45 am

      Don’t worry. They will have their own crony staffs. This time they will be even more arrogant as they know they are untouchable.

      Like or Dislike: Thumb up 4 Thumb down 0
  • And Paultan conveniently omitted the annual contract value…
    RM300mil a year for the next 15 years is a sum large enough for them to come up with all sorts of alternatives and fomula…
    But they are all silent now, so silent that it’s deafening.

    Like or Dislike: Thumb up 23 Thumb down 3
  • Fuhh
    Naza + berjaya
    Kroni ke?

    Like or Dislike: Thumb up 12 Thumb down 0
  • vivizurianti on Jan 29, 2020 at 10:57 am

    Q: If crony-guy marries crony-gal, blessed by King crony, what do you get?

    A” Big fat crony family. Guarantee kuat makan becoz combined greediness.

    Like or Dislike: Thumb up 8 Thumb down 0
  • Furniture on Jan 29, 2020 at 11:40 am

    All car interiors will be in Red Leather?

    Like or Dislike: Thumb up 3 Thumb down 0
  • rusmanb on Jan 29, 2020 at 2:05 pm

    Government should look into using AI to manage the fleet. AI is the future. Skilled mechanics and technicians are still very much needed to service the cars but managing the fleet can be fully automated with fewer staff.
    Everybody needs to start thinking of upskilling and moving up the value chain.

    Like or Dislike: Thumb up 2 Thumb down 0
    • Ghani on Jan 29, 2020 at 4:08 pm

      This gomen has no future and it knows it. So what better way to enrichen itself while enriching its cronies when the sun still shines?

      Like or Dislike: Thumb up 2 Thumb down 0
 

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