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