NZ Wheels to buy Swire Pacific unit's Mercedes-Benz dealership in Malaysia

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KUALA LUMPUR (Nov 15): A unit of Swire Pacific Ltd. is exiting its business to sell Mercedes-Benz cars in Malaysia to focus on its core market in Taiwan, says Taikoo Motors Group, Swire’s trading and industrial arm.

* Taikoo will sell assets of Auto Commerz Sdn to an existing dealer with help from Mercedes-Benz in Malaysia, spokeswoman says in an emailed response

* The buyer is NZ Wheels Sdn Bhd, says Mercedes-Benz Malaysia

* Cycle & Carriage Bintang, another Mercedes-Benz dealer in Malaysia, received privatization offer from major shareholder Jardine Cycle & Carriage due to intensifying competition, lower consumer spending and strict lending guidelines

* Sales of Mercedes-Benz dropped 26% y/y in first 9 months of 2019 in Malaysia

* Swire’s trading and industrial arm accounts for 11% of net income in 2018, the second-largest contributor after the property business that accounts for 94.8%

* Swire, which holds majority stake in Cathay Pacific, has been selling its non-core assets over the past 2 years