C & C Automobiles is the new Peugeot distributor

It’s official: the new distributor for Peugeot vehicles in Malaysia is Cycle & Carriage Automobiles Sdn Bhd, a subsidiary of Cycle & Carriage Bintang Bhd (CCB). Although the distribution principle was already finalised by December 31st 2001, it was only today that an official signing ceremony for the Importation and Distribution Agreement was held.

CCA is Peugeot’s fourth distributor in Malaysia since the French maker started selling cars here. It was first held by Asia Motors in the 1960s through to the mid-1980s before moving to Ibis Automobile, a Malaysian-Thai joint-venture. Ibis held it briefly in the late 1980s and then MBf-Peugeot took over for most of the 1990s.

Unfortunately for MBf-Peugeot, financial difficulties in the late 1990s saw its business operations affected. Certain thorny issues with the contract assemblers did not help and at one stage, it is believed that Peugeot had to step in and had some discussions with Proton on assembling their products. However, a reliable source said that at that time (1998), there was no intention to drop MBf-Peugeot as a distributor.

2002 sees a change as Peugeot has found a stronger partner in Cycle & Carriage Bintang, the oldest car company in Malaysia. Last year, when Peugeot began to consider new partners, CCB was one of the top candidates not only because of its strength but also the fact that it has a big stake in Indonesia’s Astra, which assembles and distributes Peugeots there. The Sime Darby Group, which holds the Peugeot franchise in Singapore, Australia and New Zealand, was also known to have been interested in handling the brand in Malaysia.

“At CCB, we have the financial resources to order cars as stock, rather than wait for customers to book them and then order from the factory. This is one of the capabilities I believe our new business partners recognised when they decided to team up with us,” explained Datuk Hj Mohamad Hasan, Managing Director of CCB.

At one stage, it seemed like the switch would be challenged by MBf-Peugeot which had issued a statement at the end of December suggesting it was still the rightful distributor. However, that issue has been resolved amicably and CCB has also bought over the stock of spare parts and some assets in the process.

“It is also possible that MBf-Peugeot can participate in retail activities if they are interested but it will depend on CCA. There are already many dealers who are applying to sell Peugeots in various parts of the country,” revealed Frederic Banzet, Director of International Operations (Asia-Pacific region). He noted that the change was necessary because Peugeot needed to have a stronger partner to meet the challenging years ahead.

For this year at least, there will be no local assembly of models and from June, only CBU imports will be available. A wide range is being offered, from the 206 1.4 to the flagship 607 2.2 as well as the ‘European Car of the Year’, the 307. Prices indicates range from RM86,000 to RM260,000. The company expects to sell at least 1,000 units during 2002.

Local assembly is seriously considered and being planned. However, because the supply of CKD packs in France became inactive over the past few years, it takes time to resume operations. CCA hopes to begin assembly by year’s end and the models are likely to be the facelifted 406 and the 206.

It is interesting to note that this is the second time that the same company handles the Mazda and Peugeot brands because in the 1970s, Asia Motors also handled both brands. Furthermore, the assembly plant adjacent to CCB’s head office which the company acquired in the 1980s was originally Asia Automobile Industries and assembled Mazdas and Peugeots. This plant also had some share by Peugeot but when it was taken over by CCB, Peugeot sold off its stake. So it will be really something special if Peugeot assembly returns to the same site in Petaling Jaya’s Jalan 219 area!

As far as after-sales support is concerned, Peugeot owners should have no worries. Datuk Hj Mohamad Hasan said that among the conditions of the agreement was that CCA must look after past customers and also ensure that supplies of spare parts are available. Towards this end, the company has been quickly building up its inventory and providing training for service personnel. On its parts, Peugeot is also establishing a regional training centre in Malaysia along with its regional headquarters for ASEAN.

RM25 million has been earmarked for renovation of existing premises to accommodate the new brand’s products. Though the showrooms will be alongside Mercedes-Benz and Mazda showrooms, there will be distinct identities presented to the public.