By RAHIMI YUNUS / Pic source Kia.com
BERMAZ Auto Bhd (BAuto) has entered into a joint venture (JV) agreement with South Korea’s Kia Motors Corp to produce and assemble Kia vehicles in Malaysia via a newly incorporated company called Kia Malaysia Sdn Bhd (KMSB).
In a joint statement yesterday, the parties said three models are planned under the Kia JV for the Malaysian market namely Kia Seltos and Kia Carnival, while the third model will be determined at a later stage.
Kia is said to make KMSB the regional manufacturing hub for the Kia brand of vehicles in Asean and other potential markets.
In line with its expansion plan and transformation strategy brought about by the new brand purpose, Kia has also appointed BAuto’s subsidiary, Dinamikjaya Motors Sdn Bhd (DJMSB), as the new distributor of Kia vehicles in Malaysia.
As the new distributor, DJMSB holds the right to distribute and sell Kia vehicles — completely knocked-down and completely built-up units — sell genuine parts, offer after-sales service and keep Kia’s brand reputation and awareness in Malaysia.
“After months of searching for the right partner, Kia is delighted to enter into the Kia JV and Kia distributorship with BAuto.
With BAuto’s proven capability in successfully building up automotive marques in Malaysia and the Philippines on top of their auto- motive manufacturing experience, we believe we have placed the Kia brand in good hands under the capable leadership of its executive chairman Datuk Seri Ben Yeoh,” Kia Asia-Pacific president and CEO
Tae Hun Lee said in the statement. Tae said BAuto is a renowned public listed automotive company in Malaysia with a strong management team and good track record. He said Kia is confident the Kia JV and distributorship will pro- mote growth and bring synergistic benefits to both parties. Meanwhile, Yeoh said the Kia JV and distributorship will complement the group’s existing automotive businesses.
“We are pleased to be given this opportunity to undertake the Kia JV and Kia distributorship with our partner, Kia, under Hyundai Motor Group, which is Korea’s second-largest multinational automotive manufacturer and the fifth-largest automotive manufacturer in the world.
“Kia marque vehicles are well- known for their stylish looks, packed with smart features, frequent facelifts and new launches that keep prospective buyers excited over its products,” Yeoh said.
BAuto announced on the stock exchange that KMSB will have an initial share capital of RM3,000 comprising 3,000 ordinary shares issued at RM1 each, whereby BAuto and Kia Corp will hold 1,000 (33.33%) and 2,000 (66.67%) KMSB shares respectively.
The company also announced it has entered into a subscription cum shareholders’ agreement for the subscription of a 65% stake in the enlarged issued share capital of DJMSB comprising 3.25 million new DJMSB shares for a cash subscription of RM3.25 million or at RM1 per DJMSB share.
Besides Kia, in December last year, French carmaker Groupe PSA awarded Berjaya Auto Alliance Sdn Bhd the sole distributorship of new vehicles under the Peugeot marquee and the rights of after-sales and spare parts distribution for the Peugeot, Citroen and DS marquee vehicles in Malaysia.
Berjaya Auto Alliance is a newly incorporated company, with Berjaya Corp Bhd and BAuto holding 51% and 20% stakes respectively, according to a joint statement by the two companies and PSA.