They include Ong Beng Seng, incumbent Hong Seh and other sports-car dealers
By SAMUEL EE 6 June 2009
Five parties, including current importer Hong Seh Motors, are vying for the local Ferrari franchise - a disproportionately large number considering the small size of the Singapore market.
A decision on the appointment of a new dealer is expected to be made later this month, even though the Italian super sports car maker has declined to comment on the matter.
‘This is confidential and all I can say is that at the moment, no decision has been made,’ said Matteo Bonciani, director of communications for Ferrari Asia Pacific. ‘We are still evaluating every single proposal and we are looking for the best solution because we value our customers and they are the most important to us.’
He also assured Ferrari owners in Singapore that its current importer, Hong Seh Motors, is still providing after-sales support ‘to the satisfaction of Ferrari and, above all, its customer community’. This was in response to concern that Hong Seh’s agreement with the Italians will expire by mid-June.
‘If you are a Ferrari customer, you need to have the proper service professionals to take care of your car,’ said Mr. Bonciani. ‘Ferrari’s priority is the full satisfaction of its customer base, as we have always tried to do, especially since the establishment of the Ferrari Asia Pacific HQ in the region.’
The exclusive Italian manufacturer is said to have invited applications late last year, as part of an overall goal to strengthen brand identity and further develop the business in this part of the world.
An earlier report had also identified Ong Beng Seng - who is behind F1 race promoter Singapore GP - as among those interested in representing the prancing horse badge. Mr. Ong is also one of the owners of Hyundai distributor Komoco Motors.
As for the rest of the applicants, they include two distributors of sports cars. One of these is behind another well-known Italian marque, while the other has long been associated with an iconic German brand, among others.
It is understood that for the past three years, the Shanghai-based Ferrari Asia Pacific office has been reviewing its dealer network across the region.
The decision to look for a new partner here is likely to stem from a desire to maximise the full potential of the business. The new partner will be expected to invest in a more visible showroom in the traditional Leng Kee Road motor belt or in the high-end Orchard Road area. Corporate identity standards for this new showroom are also understood to be one of the requirements, as well as an increased focus on after-sales service and customer care.
Currently, Hong Seh’s showroom is in Jurong. The home-grown company has held the Ferrari franchise since 1982, after taking over from Wearnes.
Earlier last month, a team from Ferrari Asia Pacific is said to have visited each of the Singapore applicants over the course of a week. The successful applicant will likely be subject to conditions such as controlled margins, a relatively new concept for Ferrari where the principal fixes or controls the dealer’s profit margin. This new margin is said to be only around a third of the current amount.
At the same time, list prices of the sports cars may be raised by a double-digit percentage. Currently, the model range starts at about $770,000 for a Ferrari F430.
But according to one applicant, these are only ‘guidelines’ set by Ferrari.
‘Each applicant is free to offer his own business plan,’ said the source. ‘More importantly, there is a promise of a level playing field and greater transparency.’
The Ferrari brand is low-volume and highly desirable. Last year, 45 Ferraris were delivered in Singapore, part of the car maker’s total global sales of 6,587 units.
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5 in the running for Ferrari dealership
They include Ong Beng Seng, incumbent Hong Seh and other sports-car dealers
By SAMUEL EE
6 June 2009
Five parties, including current importer Hong Seh Motors, are vying for the local Ferrari franchise - a disproportionately large number considering the small size of the Singapore market.
A decision on the appointment of a new dealer is expected to be made later this month, even though the Italian super sports car maker has declined to comment on the matter.
‘This is confidential and all I can say is that at the moment, no decision has been made,’ said Matteo Bonciani, director of communications for Ferrari Asia Pacific. ‘We are still evaluating every single proposal and we are looking for the best solution because we value our customers and they are the most important to us.’
He also assured Ferrari owners in Singapore that its current importer, Hong Seh Motors, is still providing after-sales support ‘to the satisfaction of Ferrari and, above all, its customer community’. This was in response to concern that Hong Seh’s agreement with the Italians will expire by mid-June.
‘If you are a Ferrari customer, you need to have the proper service professionals to take care of your car,’ said Mr. Bonciani. ‘Ferrari’s priority is the full satisfaction of its customer base, as we have always tried to do, especially since the establishment of the Ferrari Asia Pacific HQ in the region.’
The exclusive Italian manufacturer is said to have invited applications late last year, as part of an overall goal to strengthen brand identity and further develop the business in this part of the world.
An earlier report had also identified Ong Beng Seng - who is behind F1 race promoter Singapore GP - as among those interested in representing the prancing horse badge. Mr. Ong is also one of the owners of Hyundai distributor Komoco Motors.
As for the rest of the applicants, they include two distributors of sports cars. One of these is behind another well-known Italian marque, while the other has long been associated with an iconic German brand, among others.
It is understood that for the past three years, the Shanghai-based Ferrari Asia Pacific office has been reviewing its dealer network across the region.
The decision to look for a new partner here is likely to stem from a desire to maximise the full potential of the business. The new partner will be expected to invest in a more visible showroom in the traditional Leng Kee Road motor belt or in the high-end Orchard Road area. Corporate identity standards for this new showroom are also understood to be one of the requirements, as well as an increased focus on after-sales service and customer care.
Currently, Hong Seh’s showroom is in Jurong. The home-grown company has held the Ferrari franchise since 1982, after taking over from Wearnes.
Earlier last month, a team from Ferrari Asia Pacific is said to have visited each of the Singapore applicants over the course of a week. The successful applicant will likely be subject to conditions such as controlled margins, a relatively new concept for Ferrari where the principal fixes or controls the dealer’s profit margin. This new margin is said to be only around a third of the current amount.
At the same time, list prices of the sports cars may be raised by a double-digit percentage. Currently, the model range starts at about $770,000 for a Ferrari F430.
But according to one applicant, these are only ‘guidelines’ set by Ferrari.
‘Each applicant is free to offer his own business plan,’ said the source. ‘More importantly, there is a promise of a level playing field and greater transparency.’
The Ferrari brand is low-volume and highly desirable. Last year, 45 Ferraris were delivered in Singapore, part of the car maker’s total global sales of 6,587 units.
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