Cycle & Carriage Automobiles Sdn. Bhd., a wholly owned subsidiary of Cycle & Carriage Bintang (CCB) Bhd will cease operation as Peugeot franchise holder in Malaysia. CCB has recently notified Bursa Malaysia that it will not renew its franchise contract with Automobiles Peugeot of France when it expires by 31st December 2007.
CCB has also announced in its annual report that its Peugeot business arm had incurred net losses of RM250,000 in 2006 and RM1.77 million for the six months ended 30th June 2007. By giving up the Peugeot franchise, it is expected that ‘funds released from the discontinuation of the business will be used to optimise the Group’s working capital’. For the record, CCB has held the Peugeot brand for the past five years.
Market talk has it that local automotive conglomerate Naza will take over from CCB next year as Peugeot sole distributor, franchise holder and of course, importer for future CBU Peugeot automobiles in Malaysia.