Mercedes-Benz Malaysia to invest $77.5M

malaysia

Mercedes-Benz Malaysia Sdn Bhd, which has invested $138.5 million since its incorporation in 2003, said the company will invest another $77.5 million until 2019, to be spent on production facility upgrades, paint shops and new model launches.

“In addition to that, we are looking into the investment in our dealer network, where we are looking into upgrading our own facility, especially on the dealer side in 2015,” its president and CEO Roland S. Folger told reporters at the group’s 2014 performance media briefing yesterday.

The German luxury car manufacturer registered a 17% increase in sales of 9,419 units in 2014, up from 8,082 units in 2013, with the double digit sales increase driven by annual retail volumes from its passenger car segment.

The sales of its passenger cars rose 29% to 6,932 units last year, from 5388 units in 2013.

“The best-selling model in 2014 was the A-Class with a full year of introduction to the market,” said Folger, who noted the company’s product portfolio includes the A-Class, S-Class, CLA-Class, C-Class and GLA-Class.

“We will ensure that targets will surpass that we have achieved thus far,” he added, noting the group is targeting to achieve more than 17% increase in sales for 2015.

Commenting on whether the Goods and Services Tax (GST) implementation would affect its car prices, Folger said that the GST would not have a direct impact towards its car prices.

“We are not going to raise our prices on April 1, definitely not. Of course we have to adjust as the cost is going up but we will also try to mitigate that by discussing with our suppliers to not just simply raise the cost,” he said.

Meanwhile, he also noted that the company will try to mitigate the effects from the volatility on exchange rates, especially on the weakening ringgit.

“We won’t go and say that due to the strengthening of the Euro versus the ringgit, we have to increase car prices. We don’t do that.

“We always think first because we are in a competition, so we have to think first before we simply raise the prices,” he said.

The company currently employs over 280 employees under its administrative and sales office in Kuala Lumpur and production plant in Pekan, Pahang.

It manages the wholesale distribution of Mercedes-Benz, smart and Mitsubishi Fuso vehicles, service and spare parts, as well as software development for global sales, with a total of 87 outlets providing sales and after-sales services across Malaysia.

(The Sun Daily)

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