Jump to content

Cycle & Carriage and parallel importers cross swords

Cycle & Carriage and parallel importers cross swords

Blogger

7,991 views

monthly_05_2011/blogentry-59916-1304917322.jpg

blogentry-59916-1304917287_thumb.jpg

Cycle & Carriage, the authorised agent for Mercedes-Benz in Singapore, has riled parallel importers with a series of ads pointing out the shortcomings of parallel-imported Mercs, resulting in advertising authorities stepping in. According to local media reports, an ad by Cycle and Carriage read: "Cheaper Mercedes-Benz cars do come with standard accessories. Headaches, stress, sleepless nights, to name a few."

 

The Automotive Importers and Exporters Association (AIEA), a trade body of about 75 parallel importers, has filed complaints with the authorities over the newspaper advertisements.

 

AIEA's VP Lim Tze Yong was quoted complaining that the ads were "not justified" as they gave the impression that parallel-imported goods were counterfeited. The ASAS has since informed Cycle & Carriage that the ads had to be modified "in accordance with the Singapore Code of Advertising Practice" but has not received any acknowledgement from the firm.

 

Since parallel importers appeared in the early 1990s to break Cycle & Carriage's 40-year monopoly on selling Mercedes-Benz, the rivalry between the two sides has been bitter. But barring an ad Cycle & Carriage took out in 1996 - saying it would not honour warranty cards of parallel imports - the publicly listed automotive group has largely adopted a 'live and let live' attitude.

 

But industry watchers said the shrinking car market as well as rising competition from BMW might have prompted Cycle & Carriage to take a stronger stand now against parallel importers, which typically account for 8 per cent to 15 per cent of Mercedes sales here.

 

Since the new E-Class launched in 2009, there has been a significant rise in parallel imported Mercedes-Benz all around the island, most of which were offered about 10% cheaper than the Authorised dealer.

 

The rise in Merc parallel imports last year could also be due to the recession. One industry observer said there are still people who want to buy a luxury car during poor economic times but may not want to pay as much.

 

'So they go shopping for a parallel import,' he said. 'That is why a good proportion of the PI cars is made up of used luxury models less than three years old, imported from countries like Japan and the UK.'




2 Comments


Recommended Comments

C&C can always lower their profit margin. If there's only a few thousands cheaper to get from PI, I believed most of the buyers are more willing to buy from C & C.

Link to comment

It is 人情 vs 道理. In other words, if C&C is willing to accept lower profits, it is a bonus for consumers, but if they don't, it is within their rights.

 

Key is, does the consumers have an alternative? Can they tell C&C by voting and choosing alternatives?

 

C&C is taking average 30% from benz, PA 50% from BMW - both plenty of PIs.

EuroAutomobile is taking 60% from Alfa, any PI? None.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Godzilla Minus One: Surprisingly emotional and poignant

    When one thinks of Godzilla movies, one imagines an oversized amphibious dinosaur generating a terrifying heat ray from its mouth and fighting with other oversized monsters. Meh, nothing special, right? Wrong. Here’s why Godzilla Minus One should be an action movie you should definitely catch. In this version, the timeless clash between monster and man is once again set against the tumultuous backdrop of post-war Japan. But, unlike typical action films that dive headfirst into destruction a

    chrissyc

    chrissyc

    Musings about the Pomodoro Method

    In a hyper-connected mega-city, where time seems to tick at a relentlessly brisk pace and where distractions are aplenty, pondering the art of productivity and focus is inevitable. In fact, it’s almost become a necessity. No wonder so many listicles have been written to point us in the right directions. Different methods works for different folks, of course, and when I was in my final year of university, I was introduced to a method that I regularly return to still: The Pomodoro Method, a d

    Are forums outdated? I try to find out by asking AI

    Is your boss asking you to explore and learn how to use AI to improve the quality and efficiency of your work? Yup, you aren't the only one in that boat.  Whilst exploring new AI tools, I figured: Why not use it to answer some burning questions that I have? This time, it was about whether forums are outdated. Yes, forums like this one that we are on. I remember how before social media became popular, and before apps like Carousell existed, forums were where I chatted with others t

    23 years on, Infernal Affairs remains the best gangster movie I've watched

    TL;DR It's over two decades old, but Infernal Affairs remains THE gangster trilogy. *SPOILERS AHEAD* *SPOILERS AHEAD* *SPOILERS AHEAD* The Hong Kong Police and a triad have placed moles in each other's ranks. Tony Leung is Chan Wing Yan, an undercover cop desperate to leave his assignment. The antagonist is Senior Inspector Lau Kin Ming (Andy Lau), a decorated policeman who is actually a mole for Hon Sam (Eric Tsang), a triad boss. It's a game of cat-and-mouse, with poli

    jeresinex

    jeresinex

×
×
  • Create New...