He said dealers, technicians and mechanics will be sent for extensive training to ensure they can provide high quality service to their customers.
“Our biggest challenge right now is to educate dealers in the Peugeot network.
“Part of our key criteria is keeping our customers happy, and to do that we need to sort out issues in the brand’s after-sales services,” he said.
This is the same method they employed to turn around Mazda, which at the point of acquisition had only five dealers nationwide, and BAuto managed to increase the number to about 70, running smoothly with minimal problems.
Toh is confident the company will be able to replicate this success with both Peugeot and the recently acquired Kia as well.
“Our main objective is to fix the problems by improving after-sales and enhancing training, which we are confident we are able to do,” he said.
Toh also clarified that BAuto will not be involved in the assembly line at the Peugeot plant in Gurun, Kedah, which will continue to be operated by Groupe PSA whereas BAuto’s role is in sales.
Berjaya Corp Bhd (BCorp) group chief executive officer Abdul Jalil Rasheed is confident Bermaz Auto Bhd (BAuto) will do well in replicating the same business success with Peugeot which it has shown with its track record in running the Mazda business and also in its recent acquisition of Kia.
“BCorp is undergoing rationalisation to be more focused in its business.
“Auto distribution is one we felt required scale and deep expertise that BAuto has,” he said via Twitter.
Jalil added that this move will allow BCorp to focus on other core businesses that it wants to grow, full details of which will soon be publicly announced.
He said the group is in the process of transforming into a diversified consumer group with a focused business vertical.
Jalil was previously president and group chief executive officer of Permodalan Nasional Bhd (PNB) before having to step down, then later appointed group chief executive officer of Berjaya Corporation Bhd.
BCorp has divested its entire 51% stake in Berjaya Auto Alliance Sdn Bhd (BAASB) comprising 6.12 million ordinary shares to BAuto and other shareholders of BAASB for a cash consideration of RM6.67 million.
BAuto said it had acquired an additional 35% stake in BAASB from BCorp for a cash consideration of RM4.58 million or at RM1.09 per BAASB share.
Following the acquisition, BAuto’s stake in BAASB has increased from 20% to 55% and BAASB is now a subsidiary of BAuto.
The company said the acquisition — funded entirely via internally-generated funds — represents an opportunity for BAuto to acquire a strategic controlling stake in BAASB which holds the distributorship of renowned Peugeot marque vehicles in Malaysia and facilitate the consolidation of BAASB’s results into the BAuto Group.
“There are no material financial effects to BAuto Group and no approvals are required from the shareholders and relevant authorities,” it said.