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Saturday 24 October 2009
New Singapore player for high-powered BMW
German carmaker BMW is poised to appoint businessman Anthony Chan as a new dealer for its M models - high-powered Beemers costing upwards of $300,000 each.
German carmaker BMW is poised to appoint businessman Anthony Chan as a new dealer for its M models - high-powered Beemers costing upwards of $300,000 each.
Sime Darby’s Performance Motors, however, is expected to take a minority stake in the new set-up, which sources indicated would start operations in January.
The move, first reported by The Straits Times in April, means the Malaysian conglomerate’s status as an exclusive BMW agent in Singapore will come to an end after exactly 30 years.
It also comes barely a year after Performance Motors moved into a $60 million showroom in Alexandra Road.
However, all is not lost for Performance Motors, which will continue to be the sole agent for all other BMW models, including motorcycles.
Insiders say it will take a 40 per cent stake in the new M car set-up - its future rival.
‘It’s a very strange arrangement,’ one motor trader commented.
The joint venture’s majority stakeholder, Mr. Chan, is a 41-year-old car enthusiast known for his sports car collection. The venture represents his maiden motor foray in Singapore, but he has car businesses in China, including a BMW dealership in Xiamen.
He is said to have secured the rental of a showroom in Teban Gardens on the West Coast, next to motor entrepreneur Melvin Goh’s Lamborghini and Lotus facilities.
The Straits Times understands that Mr. Chan intends to extensively renovate the leasehold property - previously occupied by Proton and Fiat - and has submitted redevelopment plans to the authorities for approval.
Sources say there will be a second showroom at the planned Changi race track.
None of the parties involved in this unconventional tripartite deal would comment. Phone mail to Sime Darby was not returned; Mr. Chan would not answer his phone; and BMW said it had no comment.
Still, other tenants in Teban Gardens confirmed that things are brewing. ‘We’ve been seeing people from BMW walking in and out for the past three months,’ one said.
The appointment of a separate M dealership in Singapore is supposed to be part of BMW’s new strategy. The Bavarian manufacturer is likely to set up dedicated M facilities in other markets over the next few years.
The move is similar to what Toyota Motor did when it launched the Lexus brand 20 years ago - separate showrooms, separate sales staff and separate after-sales service. This strategy helped establish Lexus as a luxury make in a fairly short time.
In terms of earnings, losing part of its line-up is not expected to have a significant impact on Sime Darby, as M cars make up only a negligible proportion of its turnover.
Last year, Performance Motors sold 23 M cars, or 0.6 per cent of its total BMW sales. In 2007, the tally came to 14 units, or 0.4 per cent.
BMW is said to be eyeing a quantum leap in sales, however.
New Singapore player for high-powered BMW
ReplyDeleteBy Christopher Tan
24 October 2009
German carmaker BMW is poised to appoint businessman Anthony Chan as a new dealer for its M models - high-powered Beemers costing upwards of $300,000 each.
Sime Darby’s Performance Motors, however, is expected to take a minority stake in the new set-up, which sources indicated would start operations in January.
The move, first reported by The Straits Times in April, means the Malaysian conglomerate’s status as an exclusive BMW agent in Singapore will come to an end after exactly 30 years.
It also comes barely a year after Performance Motors moved into a $60 million showroom in Alexandra Road.
However, all is not lost for Performance Motors, which will continue to be the sole agent for all other BMW models, including motorcycles.
Insiders say it will take a 40 per cent stake in the new M car set-up - its future rival.
‘It’s a very strange arrangement,’ one motor trader commented.
The joint venture’s majority stakeholder, Mr. Chan, is a 41-year-old car enthusiast known for his sports car collection. The venture represents his maiden motor foray in Singapore, but he has car businesses in China, including a BMW dealership in Xiamen.
He is said to have secured the rental of a showroom in Teban Gardens on the West Coast, next to motor entrepreneur Melvin Goh’s Lamborghini and Lotus facilities.
The Straits Times understands that Mr. Chan intends to extensively renovate the leasehold property - previously occupied by Proton and Fiat - and has submitted redevelopment plans to the authorities for approval.
Sources say there will be a second showroom at the planned Changi race track.
None of the parties involved in this unconventional tripartite deal would comment. Phone mail to Sime Darby was not returned; Mr. Chan would not answer his phone; and BMW said it had no comment.
Still, other tenants in Teban Gardens confirmed that things are brewing. ‘We’ve been seeing people from BMW walking in and out for the past three months,’ one said.
The appointment of a separate M dealership in Singapore is supposed to be part of BMW’s new strategy. The Bavarian manufacturer is likely to set up dedicated M facilities in other markets over the next few years.
The move is similar to what Toyota Motor did when it launched the Lexus brand 20 years ago - separate showrooms, separate sales staff and separate after-sales service. This strategy helped establish Lexus as a luxury make in a fairly short time.
In terms of earnings, losing part of its line-up is not expected to have a significant impact on Sime Darby, as M cars make up only a negligible proportion of its turnover.
Last year, Performance Motors sold 23 M cars, or 0.6 per cent of its total BMW sales. In 2007, the tally came to 14 units, or 0.4 per cent.
BMW is said to be eyeing a quantum leap in sales, however.