Mitsubishi agent reassures owners ahead of showroom closing

[pianist]

Update: We have since contacted Cycle & Carriage and a spokesman has said no owners will be affected in terms of warranty and servicing. Their quotes are added below.

THE Japanese car brands are taking it hard.

Automotive group Cycle & Carriage will let go its 20-strong Mitsubishi sales force and administrative support team after the Chinese New Year, according to a Straits Times (ST) report today.


Mitsubishi will also vacate its Alexandra showroom and shift to Fulco, a sub-dealer located in Kampong Ubi. The current location has been described by as "expensive".

Cycle & Carriage is the authorised distributor and importer of Mitsubishi vehicles here.

According to the report, the group has also retrenched a number of other employees earlier this year.

Mr Cheah Kim Teck, motor operations chief executive of Cycle & Carriage, told ST the cost-cutting measures were necessary as the market share of Japanese cars had plunged in the last one year.

However Cycle & Carriage will continue its role as importer and marketer of Mitsubishi, the report said.

When queried by AsiaOne, a Mitsubishi spokesman said no Mitsubishi owners will be affected in terms of warranty and servicing.

Mitsubishi owners can continue to send their cars for servicing at Mitsubishi's four service centres: Alexandra Road, Pandan Gardens, Eunos, and Upper Thomson.

The Alexandra space vacated by Mitsubishi will be used to house Cycle & Carriage's used-car operations.

The report also mentioned that another round of retrenchments could take place at Toyota agent Borneo Motors, the largest car distributor in Singapore.

The Japanese brands have been facing a number of problems.

A weak euro and a strong Japanese yen have conspired to erode the Asian brands' profit margins and market share while at the same time, strengthening the European brands as they become relatively more affordable, the report said.

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