Tan Chong Motor to settle RM180m customs bill out of court

Tan Chong Motor Holdings Bhd said it will be settling its RM180 million Royal Malaysian Customs Department (RMCD) bill out of court, by way of reduced bills of demand and compound amounting to RM109 million.

In a filing with the exchange, the car assembler said the settlement is subject to the finalisation of the terms of the consent order.

"The company is pleased to announce that this matter has been resolved amicably and expeditiously as this will enable Tan Chong Motor Assemblies Sdn Bhd (TCMA) to focus on its core business instead of being entangled in a protracted litigation," said the group.

In May last year, RMCD slapped TCMA with the RM180 million bill for excise duties from Nov 1, 2016 to Oct 31, 2019.

TCMA is the group's manufacturing subsidiary with facilities in Serendah, Selangor as well as Da Nang, Vietnam and Yangon, Myanmar.

The subsidiary has built passenger and commercial vehicles for Nissan, Renault, Subaru, Mitsubishi, UD Trucks, Foto and Bison trucks.

Tan Chong Motor's share price closed unchanged at RM1.17, giving a market capitalisation of RM786.24 million.

 Source: The Edge Markets

Tan Chong Motor Holdings quarterly earnings fell 57.2% to RM 31.67 million, sales declined 13.1% due to Japan earthquake, Thailand floods and Malaysia tighter lending policy

(TCHONG closing price today (21.05.2012) was RM 4.50)

Tan Chong Motor Holdings Bhd's earnings fell 57.2% to RM31.67mil in the first quarter ended March 31, 2012 from RM74.08mil a year ago due to significant reduction in supply and demand but it expected a scaleable recovery.

"Earthquakes, floods, tighter credit have significantly cut supply and demand," it said on Monday, pointing out that revenue declined 13.1% to RM982.59mil from RM1.131bil a year ago.

In terms of earnings before interest, taxation, depreciation and amortisation (EBITDA), it fell by 42.6% from RM129mil to RM74mil. Earnings per share were 4.85 sen compared with 11.35 sen.

Tan Chong said the automotive division recorded RM972mil in revenue, down 13.4% from the RM1.122bil a year ago while segment EBITDA of RM67.8mil was a decrease of 46.1% from RM126mil a year ago. "The decrease in both top and bottom-line is due to stock constraints in popular models (such as Navarra, Grand Livina and Livina X-Gear) coupled with high selling costs.

"Credit growth is tighter compared to a year ago as per Bank Negara policy guidelines and we had to work harder and campaign more to cushion lower loan approvals and a weaker used car market. Operating margins fell from 9.5% to 5.2% in an intense market place," it said.

However, Tan Chong said it was undaunted by the slowdown as it was extending its geographic reach regionally and broadening its product pipeline to address a larger and more integrated Asean.

It said the group was building a robust and more geographically dispersed supply chain in Indochina, which has led to higher intrinsic cost increases to cover a wider footprint.

"In a stabilised situation where inventories have been rebuilt throughout the chain to normal levels, we can anticipate a scaleable recovery.

"Barring any unforeseen circumstances, we expect our vehicle sales would exceed the industry growth with the planned launch of a B sedan (a segment currently unrepresented) in addition to the introduction of selected CBU models selling well in various Asean markets," it said.

Source: www.thestar.com.my

Edaran Tan Chong Motor launches all-new Nissan Elgrand, Murano

Edaran Tan Chong Motor (ETCM) launched the all-new Nissan Elgrand and Nissan Murano last Friday.

Both Elgrand, a seven-seater premium multi-purpose vehicle (MPV), and Murano, a premium sports utility vehicle (SUV), are fully imported from Japan and retail from RM384,863.20 and RM318,882.50, respectively.

"With the new line-ups, ETCM will bring new levels of performance, refinement and ownership experience to the luxury segment," it said in a statement.

Both vehicles are supported by a three-year or 100,000km warranty, whichever comes first.

Coined as the the "King of Minivans", the Elgrand has a sedan-like drivability and stability, thanks to its highly engineered all-new-platform, giving it a low centre of gravity to provide complete control and a comfortable ride.

The MPV uses a 3.5-litre V6 engine that has a maximum power output of 280PS at 6400rpm and maximum torque of 344Nm at 4400rpm.

The Elgrand wears a stylish chrome-coated, polished 18-inch aluminum-alloy wheels and comes in four exterior colours - White Pearl, Brilliant Silver, Dark Purple and Black.

The award-winning Nissan Murano continues to be the category benchmark for styling, performance and value.

Among the refinement in the premium SUV are a refreshed bold grille and a redesigned front bumper, complete with a beautiful 5-Y spoke 18-inch alloy wheels.

The Murano features a familiar 3.5-litre V6 engine that produces a maximum power of 260PS at 6,000rpm with a maximum torque of 336Nm at 4,400rpm and is coupled with an advanced Xtronic CVT transmission with an intelligent all-wheel drive system.

Source:www.btimes.com.my