Motoring @ AsiaOne

Audi agent enters fray

Hadi Tanaga puts pedal to the metal to drive his Audi import & distribution business.
Christopher Tan

Mon, Jul 02, 2007
The Straits Times

BUSINESSMAN Hadi Tanaga is putting the pedal to the metal to drive - and retain - his Audi import and distribution business in Singapore.

He has bought a $12 million showroom on Leng Kee Road, adding another storey to his existing showroom there, and has acquired a new property in Kampung Ubi for $6 million to expand after-sales capacity.

But most impressively, he has doubled Audi sales in the first six months of the year.

 

He is doing all this despite - or some say because of - Audi Asia Pacific's plans for a restructuring of the business in Singapore.

Audi Asia Pacific's restructuring might follow the lines of what fellow German car manufacturers Mercedes-Benz and BMW have done in recent years here, and sister brand Volkswagen's separation from entrepreneur Peter Kwee early this year.

Volkswagen assumed the role of importer, distributor and retailer in February, severing a seven-year partnership with Mr Kwee's Group Exklusiv.

Mercedes-Benz took over the distributorship of its cars from Cycle & Carriage in 2000, while BMW assumed the importer's role a few years earlier.

Mr Tanaga did not comment on possible changes but indicated that the business - with his new investments - might not be viable if the status quo were altered.

Ms Pauline Cheah, Audi Asia Pacific's public relations manager, said: 'We are exploring various options that we are confident will put the Audi brand in the best position to achieve our goal of becoming the most successful premium brand worldwide.

'While changes to the business model in Singapore are expected, the details are still being finalised.'

Talks on the revamp have gone on for a year and should be wrapped up by the end of the year.

Late last year, Mr Tanaga hired Mr Marc Singleton, the former managing director of BMW agent Performance Motors, to help boost Audi sales.

The move is paying off. Premium Automobiles, Mr Tanaga's Audi agency, has sold 460 cars in the first six months - more than double the 221 units registered in the same period last year.

Mr Tanaga recently forked out $12 million for a new building next to Mr Kwee's Skoda showroom on Leng Kee Road.

He also bought a $6 million unit in Kampung Ubi, next to his Audi after-sales centre, which he spent $15 million to build. It opened in 2004. The new building in Kampung Ubi will also be for after-sales service.

The Straits Times understands that Mr Tanaga will expand the Audi showroom on Leng Kee Road. Meanwhile, he is on the lookout for yet another site - preferably on Alexandra Road - for a flagship Audi facility.

The new investments are in line with Audi's own ambitions to become the world's top-selling luxury car brand by 2015. It now trails far behind BMW and Mercedes-Benz.

New models are being planned, including a new A4 to rival Mercedes' new C-class in September; a Q5 compact cross-over to rival the BMW X3 next year; an RS6 with a wild 5.2-litre V10 engine producing in excess of 500 horsepower; and a TT-S, an extreme version of the TT coupe.

 
 
 
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