Federal Auto marks 50 years in business with new identity
For the average folk on the street, Federal Auto and Volvo are names so synonymous with each other, they are regarded by many as one and the same entity, which they are not. Federal Auto was established at Penang in 1960, and eventually became the official distributor for Volvo cars in Malaysia.
Indeed, Volvo’s heydays in Malaysia, when the 240 and 760 were fighting neck-and-neck against Mercedes’ offerings as the default choice of executives, came under Federal Auto’s watch. Although the Volvo the principal has since stepped in and assumed the role of distributor itself, Federal Auto continues to enjoy a strong relationship with the brand having a well-established network of sales, service, and spare parts in place already.
Having been relieved of the distributor’s role for Volvo and assuming the role of a dealer, Federal Auto is now free to add other brands under its wings. It briefly acquired the Renault franchise in the 1990s if you remember, but like the proposed Renault-Volvo merger which was also in discussion around that time, that did not work out.
According to Mr Cheng Seng Fook, Managing Director of Federal Auto, Volvo remains a strong component of Federal Auto’s business, contributing 40% of the company’s income. Meanwhile, Volkswagen and Mitsubishi, which Federal Auto has begun selling in recent years, are gaining increasing importance.
In addition to cars, Federal Auto is also dabbling into the accessories business, having acquired sole distribution rights for ABT Sportsline products for Volkswagen and Heico Sportiv products for Volvo in Malaysia. These products are offered under its sports tuning arm – Federal Auto Sports Tuning (FAST).
A cocktail reception was held at Hilton KL yesterday to mark the company’s 50th anniversary, and also to launch its new corporate logo, which now comes with a single-word tagline of ‘Driven’. At the reception, the company also revealed some of its plans moving forward in relation to its handling of its Volvo, Volkswagen and Mitsubishi dealerships.
Two new Volkswagen showrooms have already been opened this year at Jalan 222, Petaling Jaya and Johor Bahru respectively under its subsidiary FA Wagen Sdn Bhd. A third branch, a full-fledged 3S centre worth RM 10 million, is scheduled to open in Glenmarie this October. The VW branch at Jalan 222 sits alongside a Mitsubishi dealership under Federal Auto’s management.
For Volvo, the new 3S centre in Glenmarie has commenced operations since the end of 2009. We have visited this dealership on no less than four separate occasions as it served as the venue for three Volvo launches and also the flag-off point for the Volvo S80 media drive recently featured on Autoworld.com.my.
The showroom will serve as the company’s headquarters from the end of this year until 2013, when its current base of operations at Jalan Klang completes re-development into a 26-storey commercial tower, housing a new Volvo showroom at the ground floor. Existing showrooms in Penang, Ipoh, Melaka, and Johor Bahru are currently being upgraded, while a further RM 10 million has been set aside to develop a piece of property in JB to house the company’s first multi-brand showroom that will house dealerships for Volvo, Volkswagen, Mitsubishi and FAST under one roof together with a body & paint shop.
“The new Federal Auto is a dynamic multi-brand automotive dealer with strong business ethics, impeccable integrity and a solid reputation built over five decades. We aim to be the preferred partner to world-class automotive brands as we have the experience, expertise, resources and the drive to succeed,” said Mr Cheng.
