KUALA LUMPUR: Cycle & Carriage Bintang Bhd has allocated over RM60 million for the refurbishment of its Mercedes-Benz dealership outlets, signifying its loyalty to the number one premium car brand in the country.
This is even after its 49 per cent stake sale in Mercedes-Benz Malaysia (MBM) to Daimler AG, a move which would negatively impact the firm’s profitability.
Following the exercise, Cycle & Carriage would no longer be entitled to the annual dividend from Mercedes-Benz Malaysia of around RM11.2 million.
Cycle & Carriage chief executive officer Wilfrid Foo Tsu-Jin said the relationship with Mercedes Benz had been healthy even after the corporate exercise.
“We are investing a lot behind Mercedes Benz brand presence here in Malaysia across the network. If this is not an enough testament to the fact that we are here to remain in the auto retailing landscape, I don’t know what else is.
“We have been in the business since 1961 and this is not a one-off fling. This is a full-one partnership that has spent decades in Malaysia,” Foo told reporters here after the launch of the upgraded showroom at Mutiara Damansara.
He added that there was still a lot of opportunities to organically grow in the business.
However, he reiterated that the firm was still open to new opportunities including distributing other car brands in the long term.
“Talking about possibilities, this market for Mercedes-Benz has grown dramatically. Our focus is still to be a leading retailer for this brand. Opportunities in the long term (distribution of other car brands), definitely we are open,” he said.
Foo said the firm had spent around RM18 million for the refurbishment of its showroom at Mutiara Damansara.
“The newly-introduced concept would lead a new era of retail experience and bolsters its customer-centric efforts in Malaysia.
“We are the very first to bring this new Mercedes-Benz brand presence and experience to our customers in Malaysia. And to us, innovation is in the ability to bring to life an experience that addresses the unmet and unarticulated need,” he said.
MBM president and chief executive officer Dr Claus Weidner said the new brand presence at Cycle & Carriage Mutiara Damansara elevates modern luxury at dealerships, setting a new benchmark in the retail industry.
He said it is the first automotive retail concept that focuses on creating memorable moments with Mercedes-Benz brand using a combination of personal contact and digital elements in advice, sales and service
The new brand presence in Cycle & Carriage Mutiara Damansara Autohaus features the integration of elements such as media and IT, format, people and process and architecture to deliver best customer experience, he added.