Saturday, October 07, 2017

Mercedes-Benz Malaysia has invested over RM1 Billion to date in Malaysia - Announcement of 3rd Quarter 2017 Performance Results, Mercedes-Benz EEV cars and other Details


We were at the Mercedes-Benz Malaysia (MBM) Pekan Plant for the company's 3rd Quarter 2017 performance report as well as be further informed on the developments of the company here in Malaysia and to tour the current assembly of Mercedes-Benz hybrid vehicles, namely the C350e and the E350e plug-in hybrids. During the briefing, MBM has announced that the company had already made an investment totalling MYR 1 billion here in Malaysia. 



This year alone, MBM has invested over MYR 90 million, as at YTD 3Q 2017, to expand and upgrade its dealership network. Going deeper, MBM has invested over MYR280 million in the Pekan Production Plant since 2003. The state of the art assembly plant currently produces 12 locally assembled vehicles, the newest addition being the Mercedes-Benz GLC200. All 12 locally assembled vehicles are classified as EEVs, out of which three are hybrid vehicles namely, the Mercedes-Benz S400h, C350e and E350e. 

The quality of the Pekan plant ranks as one of the best among 7 Mercedes-Benz plant globally and it also has one of the most technologically advanced paint shops here in the region. This makes the cars produced by the MBM plant in Pekan one of the best globally.

The massive figure is the largest total investment by a foreign vehicle manufacturer in Malaysia and it includes investment in the production, sales, training and distribution of Mercedes-Benz vehicles. This reaffirms MBM's commitment to the Malaysian market and at this moment, MBM focuses on providing the Best Products and the Best Customer Experience, 13 new models and 8 new dealerships launched year-to-date.

As for the performance reports, MBM maintains its lead in the premium segment with over 50 vehicle variants and the largest premium dealership network in Malaysia with 33 dealerships nationwide. It is because of this MBM was able to deliver 8,771 vehicles to customers for the first 3 quarters of 2017.

2017 sales figures for the first nine months of 2017 were driven by the locally produced limousines (what Mercedes-Benz call their 4 door sedans) which recorded 5,238 units sold. The limousines comprised of the Mercedes-Benz C-Class with 3,044 units sold, followed by the E-Class with 1,891 units sold, and the S-Class with 303 units sold. This was followed closely by the Mercedes-Benz SUVs with 1,895 units sold, comprising the GLC with 1,622 units sold and GLE with 273 units sold. Spurred by the introduction of the locally produced Mercedes-Benz GLC 200 and GLC 250, MBM states that growth within this segment is expected to continue.

The Mercedes-Benz compact cars recorded a total of 1,220 units sold. The Mercedes-Benz GLA topped the compact category with 435 units sold, followed by the A-Class with 383 units sold, while the CLA sold 351 units. The aspirational Mercedes-Benz Dream Cars, also known as the brand shapers, recorded a total of 406 units sold.

The company proves to be customer-centric as they remain top in terms of the customer satisfaction index charts and have beefed up after-sales services as well as financial services. MBM After sales has achieved the highest Customer Satisfaction Index (CSI) After-sales score in the ASEAN region too meaning that the additional volume of Mercedes-Benz cars on the road due to increased sales has not affected after-sales or servicing performance. 

Other essential services by MBM is also financing. This is provided in-house by Mercedes-Benz Services Malaysia (MBSM). MBSM continues to provide a seamless experience with peace-of-mind financing and insurance solutions. YTD 3Q 2017, MBSM finances four out of every 10 Mercedes-Benz vehicles sold and has a solid servicing portfolio of MYR 2.2 billion*.

With the introduction of new and innovative products like AgilityPlus and Lease2Go, MBSM aims to provide a one-stop solution for all customers further supporting MBM’s goal of Best Customer Experience.


Keeping things fresh, MBM has also increased their commitment to producing Energy Efficient Vehicles here in Malaysia. With the increased sales of plug-in hybrids (which is basically taking full advantage of the EEV tax breaks here), MBM has also called for increase awareness in their Plug-in hybrid EEV cars as well as their production process. Which is why we were brought over to the Pekan Plant for a tour of the assembly of the vehicles as well as informing us on the electrified nature of hybrid vehicles.

As these vehicles have high voltage electrical currents running through their systems, Mercedes-Benz Training Academy is in the process of training people to handle such vehicles from the production process to training those that will handle emergency (accident situations) which involve hybrid vehicles. MBM has certified an additional 27 apprentices as at 16 June 2017. 

Going the extra mile, MBM also conducted High Voltage Vehicle Introduction Training for Bomba personnel and signed a Memorandum of Understanding (MoU) with the Malaysia Automotive Institute (MAI) aimed at fostering closer working ties between both organisations. All very important as these vehicles have a lot of high voltage electrical systems.

One other details which would make plug-in hybrid ownership a little more convenient is the announcement by MBM that there will be charging stations put up by MBM. The company is launching dedicated charging stations to provide added customer convenience and service. MBM has selected Bangsar Shopping Centre (BSC) as the location for its first station. Expect this first station to be opened by the end of the year.

It looks like the commitment of Mercedes-Benz continues here in Malaysia. It is also quite amazing to witness how a premium brand like this continues to invest and continue investing in all aspects from human resources to the infrastructure in this country. We have to note that this isn't just about selling cars, it is job creation and also a whole lot more too.



During the plant tour, we were shown details on the hybrid powertrain/drivetrain - note that the orange cables would be fully electrified when in operation. So it would be wise not to touch these parts. The blue brake calipers will also tell you (or rescuers) that the car is a Mercedes-Benz Hybrid. As such, precaution must be taken for any disassembly of the vehicle or any rescue attempt.

 MEDIA RELEASE
Mercedes-Benz shows commitment to Malaysia with over MYR 1 billion invested todate.

 MBM is a substantial investor in Malaysia with RM1 billion invested in production, sales, training and distribution of Mercedes-Benz vehicles todate. (from left) Mercedes-Benz Services Malaysia, Managing Director, Mr Mike Ponnaz; Mercedes-Benz Malaysia, Vice President, After Sales, Mercedes-Benz Cars, Mr Heinrich Schromm; Vice President, Sales and Marketing, Mercedes-Benz Cars, Mr Mark Raine; and President and CEO, Dr Claus Weidner, at the MBM 2017 Third Quarter Results media briefing.

Pekan, Pahang, 5 October 2017 – Mercedes-Benz Malaysia (MBM) has invested MYR 1 billion in the Malaysian market todate. Investing in production, sales, training and distribution of Mercedes-Benz vehicles, the leading premium German marque reaffirmed its stand as a long-term and committed investor keen on driving further growth in Malaysia.

“As the premium market leader, Mercedes-Benz Malaysia is confident of the growth potential in the Malaysian automotive market. Based on this positive outlook, we continue to invest substantially in developing key areas including talent, technology, production and service as well as providing further employment possibilities and people development. These investments in turn help us deliver the Best Products and the Best Customer Service through a consistent and high level of service and expertise to our customers and cement our position as the No. 1 premium brand,” said Mercedes-Benz Malaysia President and CEO, Dr Claus Weidner.

“Mercedes-Benz continues to lead in the premium segment. With the product expansion strategy, launching 13 new models and Best Customer experience offensive, with eight new and upgraded dealerships over the past nine months, MBM was able to deliver 8,771 vehicles to customers, on track for yet another record year in 2017,” said Mercedes-Benz Malaysia Vice-President for Sales & Marketing, Mark Raine.

In that same vein, over one-third of MBM’s total investments have been spent on its Pekan Production Plant and Training Academy in Puchong, Selangor. The strategy demonstrates the brand’s commitment towards supporting the nation’s ambition of becoming an Energy Efficient Vehicle (EEV) hub.

“Together with its dealer network, MBM has invested over MYR 90 million, as at YTD 3Q 2017, to expand and upgrade its dealership network. With that, it remains the largest premium dealership network with 33 dealerships serving customers nationwide,” explained Dr Weidner.

MBM hosted a media visit at its Pekan Production Plant to help the media better understand the production process of an EEV, namely the Mercedes-Benz E350e. The plant tour covered the specialised requirements MBM has put in place to produce an EEV, including upskilling staff, cutting-edge technology and provision of safety equipment. A clear testament of the brand’s position as a front-runner in automotive innovation and commitment towards the nation’s EEV hub ambitions. MBM’s latest investment at the Pekan Production Plant is its paint shop which has a production capacity of 10,000 units per year which is equipped with a state-of-the-art robotic painting system, and is the first to use a 360 degree conveyor system in the ASEAN region.

Empowering the local economy, MBM’s Pekan Production Plant currently employs over 1,400 employees and enforces a requirement where 30 to 40 per cent of all its locally produced vehicles are fitted with local content.

Since 2003, MBM has invested over MYR280 million in the Pekan Production Plant which currently produces 12 locally assembled vehicles, the newest addition being the Mercedes-Benz GLC200. All 12 locally assembled vehicles are classified as EEVs, out of which three are hybrid vehicles namely, the Mercedes-Benz S400h, C350e and E350e.

“MBM’s strategy of focusing on the Best Products and Best Customer Service continues to drive its stellar performance, helping the brand maintain its dominant lead in the premium market year-to-date (YTD). In the first nine months of 2017, MBM successfully produced 6,580 vehicles, sold 8,771 vehicles and serviced a staggering 94,569 vehicles. We are very happy with the momentum we have gained, and look forward to bringing more exciting updates to the market in the coming months,” said Dr Weidner.

MBM excelled in servicing the high volume of vehicles while maintaining high levels of customer satisfaction, achieving the highest Customer Satisfaction Index (CSI) After-sales score in the ASEAN region. YTD, June 2017 marked the best month in history for the leading premium brand with 1,210 vehicles sold. MBM leads the way with a market share of 2.3%, YTD August 2017, retaining its leadership position in the premium vehicle segment.

In first nine months of 2017, MBM’s sales were driven by the locally produced limousines which recorded 5,238 units sold. The limousines comprised of the Mercedes-Benz C-Class with 3,044 units sold, followed by the E-Class with 1,891 units sold, and the S-Class with 303 units sold. This was followed closely by the Mercedes-Benz SUVs with 1,895 units sold, comprising the GLC with 1,622 units sold and GLE with 273 units sold. Spurred by the introduction of the locally produced Mercedes-Benz GLC 200 and GLC 250, growth within this segment is expected to continue.

The Mercedes-Benz compact cars recorded a total of 1,220 units sold. The Mercedes-Benz GLA topped the compact category with 435 units sold, followed by the A-Class with 383 units sold, while the CLA sold 351 units. The aspirational Mercedes-Benz Dream Cars, also known as the brand shapers, recorded a total of 406 units sold.

Complementing the MBM customer service journey, sister company, Mercedes-Benz Services Malaysia (MBSM) continues to provide a seamless experience with peace-of-mind financing and insurance solutions. YTD 3Q 2017, MBSM finances four out of every 10 Mercedes-Benz vehicles sold and has a solid servicing portfolio of MYR 2.2 billion*.

With the introduction of new products like AgilityPlus and Lease2Go, MBSM aims to provide a one-stop solution for all customers further supporting MBM’s goal of Best Customer Experience.

Dedicated to providing the Best Customer Experience, MBM continues to acknowledge the service excellence of its dealer partners. Examples include the recent Daimler AG accreditation awarded to the body and paint facilities of two Mercedes-Benz authorised dealerships namely, Cycle & Carriage Bintang Batu Caves and Hap Seng Star Kinrara, Puchong. Other initaitives in place that project the brand’s Best Customer Experience mantra on the Dealer Network level includes the introduction of the Mercedes-Benz Discovery Day which immerses new customers into the brand.

Passionate about preparing future talent equipped to sustain the EEV agenda, MBM continues to actively carry out its responsibility in pursuing the nations EEV ambitions through the Mercedes-Benz Training Academy which certified an additional 27 apprentices as at 16 June 2017. Going the extra mile, MBM also conducted High Voltage Vehicle Introduction Training for Bomba personnel and signed a Memorandum of Understanding (MoU) with the Malaysia Automotive Institute (MAI) aimed at fostering closer working ties between both organisations.

Moving forward in supporting the EEV ambitions of the nation, MBM intends to create a more conducive environment by launching dedicated charging stations to provide added customer convenience and service. MBM has selected Bangsar Shopping Centre (BSC) as the location for its first station.

“MYR 1 billion is a substantial investment, and speaks volumes about our confidence in the Malaysian market and our commitment to customers,” added Dr Weidner.

*The numbers for 2017 are unaudited and subject to change.

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