Peugeot to offer 5+5-year warranty, quick service with Berjaya; Bermaz to add Kia franchise by year-end?

Peugeot to offer 5+5-year warranty, quick service with Berjaya; Bermaz to add Kia franchise by year-end?

Having taken over the Peugeot distributorship from Naza, Berjaya Auto Alliance (BAASB) is looking to hit the ground running. The joint venture between Berjaya and Bermaz is expected to introduce an attractive warranty package to combat the poor public perception of aftersales service, according to The Star.

Citing a report by Maybank Investment Bank, the publication stated that the company would offer a “5+5 year warranty” on new Peugeot vehicles. This presumably consists of a five-year factory warranty and either an additional five-year powertrain warranty or a five-year extended warranty underwritten by an insurer, resulting in 10 years of total coverage.

Also promised is a quick service turnaround, with the hope of banishing memories of past parts unavailability. With these measures in place, BAASB is targeting annual sales of 4,000 vehicles, up from just 947 units in the first 10 months of 2020. The positive outlook is likely buoyed by the new 2008 crossover, which is due to arrive next year in CKD locally-assembled form.

Despite Berjaya owning a 51% stake in BAASB as opposed to Bermaz’s 20% share, it’s understood that the latter will take the lead in operations, with the company riding on the strength of Berjaya’s balance sheet and internal networks (such as the Starbucks franchise).

The report said that BAASB is confident in turning around the operation within 24 months. As such, with minimal capital expenditure, Maybank Investment Bank is expecting the company to turn a profit in its second year of operations, with an annual net profit of between RM8 million and RM10 million.

The partnership could expand beyond the Peugeot brand should the business become successful, the report also stated. Groupe PSA, which owns Peugeot, has a variety of brands (including Citroën and DS, for which BAASB will also provide aftersales service) and a host of electric and hybrid models. This is particularly beneficial for Bermaz as its other brand, Mazda, lacks the electrified vehicles it needs to compete.

Bermaz is also “keen” on acquiring another automotive brand by the end of the year, which is widely touted to be Kia. Unlike Peugeot, the third franchise will be majority-owned by Bermaz.

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • Civic Turbo 2018 on Dec 07, 2020 at 7:26 pm

    Is the 5+5 part also a question?

    Like or Dislike: Thumb up 11 Thumb down 0
  • Chow Wei Zhen on Dec 07, 2020 at 7:38 pm

    Anyway, well done to Bermaz. Since peugoet and kia under Bermaz right now, it will be better management with more improvement for aftersales service with better specced including additional of ADAS compare to both franchise (kia and peugoet) under Naza where their management under Naza Autos are really bad as aftersales service is not good and poor specced, if not mistaken.

    Wait a minute, so meanwhile since kia are still underway to joint venture with Bermaz which approving soon, since Bermaz controlling majority stake of peugeot which is 51% than controlling mazda as 20% stake meaning that Bermaz will be focusing on selling more peugeot cars? It could be!

    Like or Dislike: Thumb up 14 Thumb down 3
    • What cars u owned before? Were/was they have all those safety features? I presume u r still alive without those safety features…lol

      Like or Dislike: Thumb up 0 Thumb down 11
      • Is well known fact that NAZA shipped in CBU packs and sell to us in ckd prices…those Pugs and Kias so affordable. So kudos to NAZA

        Like or Dislike: Thumb up 7 Thumb down 0
    • Donno on Dec 08, 2020 at 9:07 am

      Bermaz only 20% stake in the peugeot venture, 51% is Berjaya group.

      ” Despite Berjaya owning a 51% stake in BAASB as opposed to Bermaz’s 20% share, it’s understood that the latter will take the lead in operations, with the company riding on the strength of Berjaya’s balance sheet and internal networks (such as the Starbucks franchise) ”

      Seems like these huge know-who corporation like NAZA and Berjaya (which both got big favours from Mahathir) does not really know how to manage their businesses. Which is why Mazda was management-buyout by Bermaz, and now Bermaz that will actually lead the new Peugeot franchise, despite is the minority partner in the deal.

      Like or Dislike: Thumb up 4 Thumb down 0
      • Copy Paste on Dec 08, 2020 at 11:10 am

        This time they copied these huge know-who corporation like DRB HICOM (which both got big favours from Mahathir) does not really know how to manage their businesses. Despite DRB HICOM owning the majority in Proton, and now Geely that will actually lead the Proton franchise, despite is the minority partner in the deal.

        Long story short, these NAZA and DRB HICOM does not really know how to manage their businesses. Jual nasi lemak la…

        Like or Dislike: Thumb up 15 Thumb down 5
    • Gabriel on Dec 08, 2020 at 9:14 am

      “If not mistaken”.
      If you are not sure, do not write it.

      Like or Dislike: Thumb up 4 Thumb down 10
      • She was right! I owned my Peugeot 3008 before, but very disappointed owner. Very expensive to maintain and have to wait for getting spare parts for few months. And aftersales service also very disappointed. Now understood why naza are actually giving up for Kia and Peugeot and sell to bermaz

        Like or Dislike: Thumb up 7 Thumb down 0
        • Gabriel on Dec 08, 2020 at 3:29 pm

          I currently own 2 Kias. No issue with aftersales from Kia. Servicing done fast and efficient. Very nice people at the service centre.
          I had an accident before. Spare parts did not take long to arrive.
          But those scenarios are before the recent planned takeover.

          Like or Dislike: Thumb up 4 Thumb down 1
        • Darren on Dec 10, 2020 at 12:46 pm

          Same here; this article is pretty spot on. Current Peugeot owner of 6 years and it’s a nightmare to deal with the service centre. The parts are always not available and the cost of service is ridiculous. As much as I love the handling of my 408T and the performance, I would never buy a Peugeot again.

          Like or Dislike: Thumb up 2 Thumb down 0
    • Kindly understand, from 2009 until 2020 Naza has settle all the problem in this car, Now after problem all settle Bermaz took over. But remember this car sure will give problem to the customer unless the staff at Nasim work with Bermaz, they all know what pcode will settle the problem.

      Any way thank’s to the down line staff very hard working.

      Like or Dislike: Thumb up 0 Thumb down 0
  • seancorr (Member) on Dec 07, 2020 at 8:34 pm

    So far so good if this route is taken. If Berjaya can offer stuff like this, it goes to show how incompetent Naza is.

    Like or Dislike: Thumb up 14 Thumb down 2
    • Donno on Dec 08, 2020 at 9:10 am

      Berjaya is similarly incompetent like NAZA, which is why it lost the Mazda franchise to management-buyout by Bermaz.

      The new Peugeot circus is going to be run by Bermaz. Berjaya is just along for the ride to reap the profit (or losses).

      Like or Dislike: Thumb up 6 Thumb down 2
  • Melania Rosmah on Dec 07, 2020 at 9:31 pm

    The Naza dudes failed miserably in handling Kia and peugeot plus chevy.
    It is an open secret that the dudes are more into exotic AP cars and real estate.They have lost focus for the last 5 years.
    It is not easy to get car distributorships.But lets forget the lousy bastards and focus on the new distributor,who have a better track record.

    Like or Dislike: Thumb up 28 Thumb down 1
    • casual rider on Dec 07, 2020 at 10:51 pm

      don’t forget the facts that Naza took over the KIA franchise since early days when nobody give a second look at Korean cars

      Like or Dislike: Thumb up 7 Thumb down 2
      • benard on Dec 08, 2020 at 12:33 pm

        “that NAZA” is very different when compared to the current NAZA.

        The late Tan Sri Nasimuddin has clear goals on what he want to achieve in the automotive industry. He basically single handedly created Malaysian MPV market by introducing the NAZA Ria and Citra.

        His sons does not have the same drive in them.

        Like or Dislike: Thumb up 10 Thumb down 0
      • Melania Rosmah on Dec 08, 2020 at 1:41 pm

        So,you want to give them a heroes award? a garland of flowers? Remember,their dead tycoon father is the one,hard at work.All his hard work,gone with the wind.Whats left is the gargantuan APs given by the iron lady.

        Like or Dislike: Thumb up 6 Thumb down 1
    • AJibkor on Dec 08, 2020 at 1:54 pm

      Just to let u know the hanky panky at NAZA KIA.
      I sent Citra for aircon part replacement(warranty).Setapak service centre said got to wait one month for spare part.After25 hours,an executive from HQ was present at site,saying he can arrange the part by the next day.
      He said he is a trouble shooter from HQ.
      Can u see the hanky panky? THe service centre is having “political” problems.Thats why KIA has never progressed the last 20 years here,although internationally,even the quailow buy KIA in America in the hundreds of thousands.

      Like or Dislike: Thumb up 3 Thumb down 0
  • intermilan on Dec 07, 2020 at 10:45 pm

    Spare parts availability (in local warehouse and these must include big ticket items) and quick turnaround time in parts delivery + services / repair fulfillment.

    In a nutshell, probably the biggest after sales services concerns that brought down the brand.

    PSA must take responsibility too. They must understand that over here Peugeot, Citroen and DS are not perceived as mass market brands but a near premium brands given the product price. So after sales services experience must commensurate.

    Turnaround time particularly bad for vehicle involved in road accident. Heard many stories of repair jobs normally took 6 months or more.
    Most if not all parts were not stock, will only start place order once insurance claims approved and need to order from France.

    BAASB must not continue with Nasim arrangement for spare parts business or issues will not resolved.

    Like or Dislike: Thumb up 6 Thumb down 2
    • Yup, Mr Samson Anand George simply the Man. Hope they keep him, all the best!

      Like or Dislike: Thumb up 2 Thumb down 13
  • intermilan on Dec 07, 2020 at 11:41 pm

    Most would be quick to put the blame on Naza Group inadequacies for the failure but let have an alternate view just for the sake of it since now its all water under the bridge.

    During the early years we should acknowledged that Nasim poured a lot of money to build the brand reputation. Their marketing was simply unbelievable. Product pricing was great too. Also note opening of quite a number of SC (mostly 3rd party) all over the country. Businesses actually see the potential and start to join the bandwagon as yearly sales climb to around 7-10K units. Maybe more, couldn’t exactly remembered.

    Unfortunately, after sales couldn’t cope up (i think technically not adequately prepared), spare parts readiness always lacking and the product itself (particularly the early Peugeot 308 or anything with THP140 and THP156 engines) were peoven to be problematic. Various engine and other issues. PSA response time and resolution most probably not helping either. Some said it’s due to typical french blind arrogance and pride. A lot of first-time Peugeot owners (who took huge risks in buying a French car) were burned financially and some might ended up with bruised personal reputation.

    These ultimately neutralise the initial positive perception Nasim had achieved which then leads to bad reputation and the inevitable sales decline (when most potential customers began to ignore/avoid the brand products altogether).

    This (and obviously some other factors too) then probably leads Nasim (and other business partners) to pull the plug on bigger investment plan and switching to defensive business strategy which only served to strengthen the irreversible downturn that ultimately killed the business.

    Like or Dislike: Thumb up 9 Thumb down 1
    • donno on Dec 08, 2020 at 12:28 pm

      Yes, french engineering is shite. PSA wouldn’t entertain complaints about their shitty designs and dubious build quality of their parts, especially the 1.6 turbo engines and aircon systems.

      NAZA service personnel also did a very bad job to placate peugeot owners.

      Like or Dislike: Thumb up 3 Thumb down 1
  • autodriver (Member) on Dec 08, 2020 at 8:19 am

    If it is true 5+5 program happening it is good for Malaysia consumers as well as pushing other competitors to offer similar program. Imagine people who hesitate to buy continental car majority is because they afraid of unreliable components which are not suit to Malaysia climate. People always scare of using continental car for long and many people sell their continental car when the car was out of 5 years warranty.

    Like or Dislike: Thumb up 1 Thumb down 0
  • the driver on Dec 08, 2020 at 8:20 am

    Modern car manufacturers these days have built in reliability and consistency so high up that the only limiting factor is the after sales service. After the sales pitching, the single big factor is how knowledgeable is the service department in providing long term satisfaction.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Vanguard on Dec 08, 2020 at 8:29 am

    once bitten, twice shy they say…..

    Like or Dislike: Thumb up 3 Thumb down 0
  • autodriver (Member) on Dec 08, 2020 at 8:41 am

    In fact why don’t BMW, Merc or VW offering similar thing or 5+2 warranty. I believe it will help to gain more sales and also help to boost resales value if owner sell the car after 5 years and second hand owner still enjoy 2 years warranty. Or probably can offer package like after 5 years warranty in 6th year until 8th years owner is enjoy 50% off for part replacement. Condition is owner must have full service maintenence with the service center. This is more efficient than keep firing pre reg sales. Continental cars nowadays stand good position as currency advantages.

    Many Japanese rivals are from Thailand where Baht was so strong in past 10 years, but Euro is relatively stable. Ringgit is weak is undeniable but not the weakest however Baht is considered one of very few strongest currency in the world. BMW 320i F30 selling price in year 2013 was RM239k and G30 now is RM249k (4% hiked). Accord 9th Gen 2.4L was RM173k in 2014 and 10th Gen is RM206 (19% increased). If continental car can put more effort in after sales service I believe they can gain more market share. It is good to see more variant rather than only seen T, H or N Japanese cars.

    Like or Dislike: Thumb up 1 Thumb down 0
  • BobbyTan on Dec 08, 2020 at 9:15 am

    well done Berjaya. Bermaz please take over Kia & bring in new Kia K5

    Like or Dislike: Thumb up 2 Thumb down 1
  • Henry on Dec 08, 2020 at 9:36 am

    Thanks but no thanks. Once bitten twice shy. Besides, there are so many other brands to choose from. :)

    Like or Dislike: Thumb up 3 Thumb down 2
  • Vincent on Dec 08, 2020 at 2:27 pm

    Well, my personal experience for the extended warranty:

    I bough an used 2013 Peugeot 308THP at the price of slight below30K back in 2018 Dec. Decision of buying it as extra play car after knowing the extended warranty packages, considered all calculated risk.

    Here the full cost and claimed of my past 2 years with the 308THP.
    1) Spend 1.85K to do full services, all oil change, and extended 2 years warranty for Engine, turbo, gear, ecu, tcu.
    2) clocked 30K km and sent for 4 times service. 2×800 and 2×1200. Total spend is 4K for 2 full years.
    3) Claimed parts: engine manifold, mounting, oil seal, turbo whole new set and etc. All in, I see > MYR15K for the claimed billed.
    4) parts waiting time is reasonable, range for 2 to 4 weeks.
    5) Owenership experience = Satisfy, value for my $$$

    Currently, the car has clocked 130KKM, decided to use for antoerh 2 years as most problematic parts has been claimed with new, shall be Ok for next 3 years.

    Like or Dislike: Thumb up 6 Thumb down 2
  • I do hope Bermaz can do better than Naza if they acquire KIA. KIA have been improved very much in term of reliability; good car though. But without supportive after sales service, confidence of the reliability become zero. Coz the KIA brand not up into most Malaysian’s mind yet…. haiz…

    Like or Dislike: Thumb up 1 Thumb down 0
  • No free lunch on Dec 08, 2020 at 10:20 pm

    I see two things here.
    1. A good product doesn’t need to give such a long warranty period.
    2. No free lunch is this world. You might have to pay extra to do maintenance in order to enjoy the extended warranty

    Like or Dislike: Thumb up 0 Thumb down 1
  • Jonn Dol on Dec 09, 2020 at 8:38 am

    Bring in the new Pug 508!

    Like or Dislike: Thumb up 0 Thumb down 0
  • Semi-Value (Member) on Dec 10, 2020 at 7:58 pm

    father in law needs to bail out son in law who dono how to manage company

    Like or Dislike: Thumb up 2 Thumb down 0
  • I’ve a Peugeot 408, been waiting for engine replacement for more than a year plus. My car broke down in JB on 30th Dec 2020. With the change over from Nasim to Bermaz, I’m still trying to find a solution for my car. Service centre inform system are not accessible, so they cannot do anything.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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