Aveta Motor Malaysia denies any involvement with defunct motorcycle brand Demak. In a press statement, Aveta states it is not affiliated, connected or associated in any way with Demak or any other motorcycle brand or distributor in Malaysia.
Stating that this is to clarify a long standing misconception on the ownership and affiliation of Aveta Motor, the statement says Aveta Motor is an independent and wholly owned Malaysian brand. As part of the MAG Group, Aveta Motor was established in 2018 and is involved in the manufacture, assembly and distribution of Aveta motorcycles in Malaysia.
In 2018, Demak, under DNC Asiatic, ceased operations suddenly in Malaysia, closing its Olak Lempit, Selangor, factory and leaving scores of workers in the lurch. Staff were earlier told to resign while the factory was officially closed on May 31 of that year.
From information received at the time, the factory would be put on sale to repay debts and bank loans. The 260,000 square foot facility assembled scooters, kapchais as well as three- and four-wheel light commercial and utility vehicles.
2018 why now bring this up?
Is bcoz it sounds like the old company foreclosed declaring bankrupt but simply rebrand themselves as Aveta and reusing the same factory & facilities under a new name?
Well not surprising as this is common loophole for companies to escape their responsibility from compensating the workers. Directors & owners take the cash and run.