Mercedes-Benz Enhancing Operations in Malaysia

Most of the investment will go toward upgrading the plant that manufactures the new C-, E- and S-Class models, with the rest earmarked for expanding and improving the Mercedes dealer network.

Alan Harman, Correspondent

February 7, 2013

2 Min Read
Auto makerrsquos Malaysian plantrsquos products include CClass models
Auto maker’s Malaysian plant’s products include C-Class models.

Mercedes-Benz marks the 10th anniversary of its arrival in Malaysia with a plan to spend 280 million ringgit ($90.8 million) by 2016 to develop its dealer network in the Southeast Asian country.

President and CEO Roland Folger says MYR80 million ($25.9 million) will be spent to upgrade the auto maker’s Pekan plant in Pahang to facilitate production of the new C-, E- and S-Class with the rest earmarked for expanding and upgrading the Mercedes dealer network.

“In the next three years, over MYR200 million ($64.9 million) will be invested to refurbish existing dealerships and also roll out the Mercedes-Benz Presentation Systems II (MPS II),” he says in a statement.

“The MPS II aims to deliver a consistent imagery of Mercedes-Benz dealerships worldwide. This brand concept gives us the opportunity to advance the brand image at the point-of-sale, to get customers even more excited about our brand.”

Since the incorporation of Mercedes-Benz Malaysia in 2003, the joint venture between Germany’s Daimler and Cycle & Carriage Bintang has delivered 40,649 cars.

It already has spent MYR480 million ($155.7 million) to assemble, distribute, market and service Mercedes vehicles in Malaysia.

“Our portfolio of vehicles will be broadened and deepened, and we are excited to unveil a new range of Mercedes-Benz cars from compacts, executive, premium luxury (and SUVs) to the super-sports models,” Folger says.

The Pekan factory has produced more than 41,700 vehicles since its opening in 2003 and in 2008 became the first auto plant in Malaysia to assemble a V-8-engine-powered car, Mercedes’ flagship SL500.

In addition to Mercedes, the factory assembles Mercedes commercial vehicles and the Mitsubishi Fuso.

Folger says efforts to enhance customer focus, aftersales service and technical expertise will be ramped up and executed through various programs.

He says Mercedes has the largest dealer and service network among the premium luxury auto makers and has spent MYR230 million ($87.6 million) to set up 27 dealerships across the country, up from 18 in 2003.

Mercedes this year launched “My Commitment, My Service” in Malaysia, an initiative to enhance service culture and instill pride among employees both internally and within the dealer network in appreciating and serving customers.

Engagement conferences and benchmarking surveys will monitor progress and maintain the momentum of the program.

Folger says apprenticeship training will be continuously upgraded to ensure there is a sufficient pool of skilled technicians to serve the needs of the growing population and of new-generation Mercedes cars.

Mercedes-Benz Malaysia took over the operations of the Apprentice Training Center in 2003 and introduced a 3-year diploma in automotive mechatronic training.

Since 2003, seven groups of 160 trainees have graduated from the program and are deployed throughout the Mercedes Malaysia dealer network. Trainees typically receive a MYR90,000 ($29,200) scholarship, and those who successfully complete the course are guaranteed jobs at the dealerships.

About the Author

Alan Harman

Correspondent, WardsAuto

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