Volkswagen and Group Exklusiv - final papers signed.

[Echelon]

Cut and paste from VAG SG Forum.

From today's papers, Volkswagen has taken over the regins of Volkswagen in Singapore from Group Exklusiv

 

 

WHAT seemed like a marriage made in heaven between Volkswagen (VW) and entrepreneur Peter Kwee's Group Exklusiv has broken down irreparably - after the proverbial seven years.

The Straits Times understands that the German carmaker and its local franchisee will part ways soon, after more than a year of tension.

 

The rift started when VW took over distributorship of its own cars last year, relegating Exklusiv to the status of a dealer. Dealers typically enjoy a mere fraction of the margins of distributors.

 

 

Notice of the change was given barely two months after Exklusiv moved the VW operations into a purpose-built $25 million showroom in Alexandra Road in late-2004.

 

'We did not see that coming. There was no warning,' recalled an Exklusiv staff member.

 

According to sources, Exklusiv has not signed VW's dealership agreement to date.

 

And in the past 18 months or so, the two sides have been trying to arrange for an amicable separation. But there have been several rounds of impasse. Chief among them is the compensation sum for Exklusiv's huge investment and the goodwill Exklusiv has built up.

 

A Big Four accounting firm recently valued the VW distribution business in Singapore at more than $10 million. But sources said VW had dismissed the sum. Instead, VW engaged another valuer, and indications were the sum it arrived at was nowhere near $10 million.

 

'Peanuts' was how a source close to the talks described it.

 

Meanwhile, VW, through local office Volkswagen Group Singapore, has been making its own plans. It has hired a number of Exklusiv's motoring executives, in what observers say are preparations to start its own retail operations.

 

The executives include group managing director S.K.Ho, who left Exklusiv early this year. Mr Ho is on a consultancy contract, and works for VW Group Singapore two days a week.

 

Others include aftersales executives. VW has also been been exploring the possibility of listed Stamford Tyres operating its workshop.

 

The Straits Times understands VW wants to start the new set-up as soon as possible, because it wants to launch the new VW Jetta which has already landed.

 

Exklusiv has not had cars available for customer test-drives for several weeks now. VW apparently requires it to rent cars for test-drives, at $10,000 or so a month for half a dozen units.

 

'I think this is going to get messy,' another source familiar with the acrimony said.

 

VW has also suspended most of its advertising. The last display advertisement it placed with Singapore Press Holdings was in June.

 

VW has also been bypassing Exklusiv and selling cars on its own. It even supplied cars to other firms, including used-car dealer Motorway.

 

Once, it sent an architect to Exklusiv's showroom, ostensibly to prepare for alterations it would be making to it.

 

'They behave like they own the place,' a source said.

 

Exklusiv secured the VW franchise in 1999. It was soon selling more than 800 cars a year - four times the previous distributor's volume. Cracks in the relationship started appearing in 2003, when sales nearly halved.

 

VW Group Singapore managing director Olaf Duebel has refused to comment.

[Try_conti]

ooohhh sh11111t !!!!!!

 

maybe this is what will save Skoda ?? I sure hope so ......

[Tashi]

hi bro

and I wonder if Skoda would be next. That would be nice, for customers. After all, the dealer towkay commented on national media that he wanted out for cars, and to focus on his other investments (including IR if my vague memory serves me). So perhaps he should amicably relinguish Skoda to VW too, and it makes economic sense since Skoda and VW cars share so much in common, and customers would benefit from VW parent's care and love.

 

Also, it would give the dealer towkay more energy to focus on his new love - Geely. One can never spread himself too thin and be truly and phenomenally successful. Even Warren Buffett and Bill Gates focused on one main thing in their lives to become that successful. just imho.

 

bless

tashi

[Try_conti]

How about u & Koolaba submit what u guys have been cooking to VAG S'pore now ?

 

Maybe something good may come out of it ??

[Soleution]

Oh bro, I don't think so, i think is the end for Skoda, there is no reason for VW MD for Singapore to take care of Skoda. Different cost center, and his title and job post does not require him to take care of Skoda brand, he is employed to focus on VW. If he put his foot in Skoda, that mean he also can put a foot in Audi, which is not likely base on how European company work.

 

[Try_conti]

Err, now I'm a bit confused ?

 

Is it a spat btw VW Singapore & Exklusiv or VAG S'pore & Exklusiv ? Big diff leh ...

 

If its VW Singapore, yes it only affect VW. But seems like VAG S'pore is involved leh. That means it affects everything Exklusiv is currently handling in that stable - VW & Skoda.

[Tashi]

hi bro

from the article, it would seem to involve only VW SG and Exclusiv, not VAG as a parent. It would be interesting to see what happens next, since we Skoddies are supposed to send in our rides to the Exclusive VW workshop along Leng Kee. So if that is gone, do we have to go Ubi or Tuas? What would it be? PAID customers would like to know.

 

bless

tashi

[Try_conti]

By the way, where in the world is the VW workshop along Leng Kee hah ?

 

If I enter by Leng Kee Rd (former Renault showroom entrance), is it to the right or left of the bldg ?

 

And do you have to call CA to book 1st or can you just straight to the w/shop ? I don't like to go thru CA & hopefully can go direct to the w/shop. Need to get them to use the VAGCOM to check is anything is wrong with the fuel gauge.

[Soleution]

Well, VW Singapore does not direct import Skoda car, so Exklusiv is still the importer for Skoda, if VAG S'pore(VAG not VW) decide to import Skoda, SEAT, Audi all under their roof, then it will make a huge different, how they are going to manager the 4 brand here.

 

which I strongly doubt so. That mean the VW MD is taking all the brand under his helm and he must make sure very brand successful or at least better than before, to deserve himself a huge payout, it really a big challenge for him. So I think he will play his card right, take care of VW first, as that is what he being appointed to do, until he fit to pull in Skoda under his sleeves, maybe he will consider taking charge of Skoda under the VAG Spore arm.

 

I not at his brainwave nor his hot seat, but if I am him, I will make sure no SEAT or Skoda come in to disturb VW, Singapore is too small for all 3 'folk'wagon brand to be present, if what I read on the other thread regarding VW new chairman statement and direction. Audi can stay as Premium product, VW have enough product line to cater for a broaden group of audience in S'pore, why need a Skoda or SEAT to come in?

 

Furthermore, if 3 brand squeeze into a market pie, either 2 not doing good, it no good for the brand nor the customer, dealer got low volume sale, lousy margin, poor after sale service etc.

[Tashi]

yes, bro, u need to go CA first, book by phone an appointment, then Jaffar will go with you across the road. YOu typically will have to wait a bit at their sofa set there.

 

bless

tashi