05 November 2002 07:57
Sime set to lose BMW franchise by next year
SIME Darby Bhd will most likely lose its franchise to sell BMW cars in Malaysia by next year, as Bavaria Motor Works
AG, the manufacturer of the car, is believed to have signed a preliminary agreement with a private- owned company linked
to Tan Sri Syed Mokhtar Al Bukhary, people familiar with the matter said. Sime currently holds the rights via its 72 per
cent subsidiary, Tractors Holdings (M) Bhd, which in turn uses its unit, Auto Bavaria Sdn Bhd, to sell the German-made
cars. It is understood that negotiations between BMW, which sells about 2,000 cars a year in Malaysia, and people acting
on behalf of Syed Mokhtar, took place sometime between March and April this year. Sources say that very low-level talks
were held in Moscow and Warsaw following which a much firmer deal was sealed in Berlin. It is believed that the
agreement may facilitate the formation of a joint-venture company which will handle BWM's wholesale business, which
includes assembly, marketing and pricing of the BMW vehicles in Malaysia. It is further believed that the deal was also
instrumental in swaying BMW to pick Malaysia as its regional centre for its operations in Asia.
[AIW [Asia Africa Intelligence Wire]] |
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