After a rather extended waiting period, the Nissan Sylphy will finally be making its way to Malaysia in the second quarter of this year (which means anytime now) and in the process, rejuvenate the rather tired family sedan line-up at Edaran Tan Chong Motors (ETCM).
The wait is not surprising as ETCM is famous for its conservative approach and their tendency to keep models going as long as possible, sometimes well beyond their sell-by date. You cannot blame them because the strategy worked for them for the longest time as Malaysians are also a conservative lot and felt comfortable with the familiar.
The wait for the Sylphy was further extended by the fact that ETCM was building a new modern plant in Serendah and they needed to sort out any teething problems before moving in the Livina, which is their volume model for now and the near future.
Nissan Bluebird Sylphy gallery
The Sylphy had to wait for the Serendah team to get their stride to prevent technical glitches and quality problems in teh highly competitive Japanese family sedan market that is now dominated by the Toyota Corolla Altis and the Honda Civic.
The Sylphy was introduced to the motoring Press during Carlos Ghosn’s visit to the Serendah plant and the Frenchman was clearly impressed by the new facility.
This is pure speculation but I suspect that his visit was part of ETCM’s effort of getting more models from the Renault-Nissan alliance, specifically from the French side of the marriage.
Ghosn’s reference to Afta and how it now makes it viable for the market to support the fully localised production of multiple brands in his speech it telling of what the boss is thinking and it would not be surprising if Serendah is chosen for that purpose.
This should please ETCM bosses and signal of bigger things to come.
I say that their next move will come from France because Renault as a brand is languishing in Malaysia and Asean. Here only the well seasoned Kangoo is available as the affordable model and the Megane satisfying fans who want something current.
ETCM being a trading company will always want either high volume or good margins and since the Renault brand is not strong enough to command a fat margin, I am quite sure that they are looking for another volume model….
The Dacia Logan is the most logical volume choice for them but TC Eurocars have always insisted that it is too basic and agricultural for the ever more sophisticated Malaysian drivers but things may have changed after they see the new Proton Saga, which is a pretty basic car and the Logan would probably match it spec for spec.
On top of that the Logan has spawned a station wagon, van and pick-up variants which would eb very useful in Malaysia and the Asean market which is lacking low cost commercial vehicles for small enterprises.
Dacia Logan Gallery
It could also be the new Dacia Sandero hatchback which is a more contemporary and youthful model but hatchbacks are notoriously difficult to sell in Malaysia unless they are priced to go, like Perodua.
Dacia Sandero gallery
As the car market continues to look uncertain for the year, it is interesting to see how ETCM responds to the situation, the order book for the Livina has swelled to the point of requiring a second shift in Serendah
But no one can live on just one model so they will have to get a second volume model running to keep the plant buzzing once the demand for the MPV stabilises. I twould be difficult to start cutting back to one shift and laying off people in a few years time.
A Renault designer working on the Logan interior
The Livina is proof that Malaysians still want a lot of bang for their buck and there is nothing in the Nissan line-up that can offer that right now while Renault has been going on the world-car offensive for some years and may have more to offer to Tan Chong….
The next few months is critical for the country in terms of political stability and this in turn means that the business community is also taking extra caution with their investments. The more than expected slowdown of the US economy will have its effects on Malaysia a few months down the road so everyone is bracing themselves for a tough time, this year we hit the full ten-year cycle of economic up and down adn there are no prizes for guessing whether it is time for the graph to point north or south
If you are keen, below is the full text of Ghosn’s speech and the Press release from ETCM.
Full text of Ghosn’s speech
Selamat tengahari… good afternoon everyone. Thank you for joining us.
As it has been seven years since my last visit to Malaysia… I am glad to have this chance to see the progress of the Nissan brand in this important market.
First, I would like to offer our partner, Tan Chong, our thanks for 50 years of success in representing Nissan… and our congratulations on their achievements over the past year.
In January, Nissan recorded its highest monthly sales in Malaysia since 1985: 3,093 units.
And with over 10,000 bookings for our new Grand Livina, we can look forward to more growth to come.
Second, I would like to thank the workforce here at this new, state-of-the-art Serendah plant … for your hard work in gearing up to production in less than a year from the end of construction.
And I would like to encourage you in your efforts as you add a second shift – that will double production to 2,400 units a month by September.
What’s more, I would like to thank everyone involved with the Nissan brand in Malaysia – from the factory and offices through sales and after-sales – for consistently maintaining Nissan in the front rank of satisfying Malaysian customers.
Recognizing the achievements of the Nissan team here in Malaysia is the first of two items on my agenda today. The second is to reaffirm Nissan’s commitment to Malaysia.
—
There are four pillars supporting Nissan’s commitment to Malaysia.
The first is Nissan’s empathy for Malaysia as a nation.
Nissan came to Malaysia in 1957 – the year of your independence – forming an alliance with Tan Chong that continues to this day.
At the time, not everyone believed Malaysia – with its diversity – would succeed as a country.
But Nissan believed… and ever since we have watched your achievements with growing respect.
The modern prosperity and sophistication of your cities is the most visible evidence.
But for me… Malaysia’s greatest achievement… is the creation of strength from diversity.
Malaysia has succeeded by respecting all identities and striving to include everyone.
As a global enterprise, we recognize this as crucial to our own progress – and a competitive advantage.
No matter what your gender, your color or your culture… at Nissan you are judged on the contribution you make to the company. Over the long term this gives us an advantage in attracting the most talented and motivated people in every market.
The same respect for identity supports the second pillar of Nissan’s commitment to Malaysia: our half-century partnership with Tan Chong.
A whole generation of Malaysians grew up with the “Datsun” brand. The next generation is now growing up knowing the Nissan brand. Despite this generational change, what has remained consistent is the superior service and focus on the customer that is the hallmark of Tan Chong.
Thanks to the efforts of Dato Tan and Dato Ang… Nissan-brand operations in Malaysia are efficient, growing… and closely integrated with our activities across ASEAN.
And that is what we need. If we can achieve efficiency, profitable growth and close collaboration with a partnership… we will continue to do so.
In fact, such alliances are at the core of our business model. The Renault-Nissan Alliance is based on mutual respect for the identity and interests of each partner. And the same is true with the Nissan-Tan Chong partnership.
The third pillar… is our firm belief in the benefits of regional integration through initiatives such as the ASEAN Free Trade Area.
By integrating 10 markets, AFTA creates a significant player in the regional and global economy.
Last year, across this region, we saw sales growth of 25% for Nissan. This year, with slower growth forecast for the mature markets… ASEAN stands out as an attractive and vibrant market place.
ASEAN is large enough to sustainably support fully localized production by multiple brands… competing to provide consumers with the best possible choice and value.
So we firmly support regional integration as a win-win proposition for Malaysia, for consumers and for business.
That’s what really matters: benefit to consumers.
And that’s why the fourth and most important pillar is our commitment to Malaysian consumers.
We will earn our place in Malaysia by bringing products closely attuned to their needs and desires…
…in terms of distinctive design, driving performance, friendly innovation, high quality and value.
And we will back our products with superior service through all phases of the ownership experience.
Already, we offer wide range of products in Malaysia:
..Sentra has been a perennial favorite.
..Latio and Latio Sport have been very well received.
..X-Trail is a multiple award winner
..The double-cab Frontier has been a best-seller in its segment
..And businesses across Malaysia rely on our two LCVs: the Vanette and Urvan
..Rounding out the line-up… March, Murano, 350Z and Cefiro offer customers a diverse and distinctive selection from the world of Nissan
For the future, we will continue to bring the best of Nissan to Malaysia. You have already shown your appreciation of the new Grand Livina and there is more to come.
Today, we are going to show you the new Sylphy sedan… which will be introduced later this year as an additional model in the Nissan line-up.
As we enter our second half-century in Malaysia… you can continue to expect the best from Nissan.
Terima kasih… thank you very much.
FULL ETCM MEDIA RELEASE
New Products to boost Nissan’s growth in Malaysia
- New Sylphy sedan to be introduced second quarter of 2008 -
KUALA LUMPUR (21st March 2008) –Carlos Ghosn, President and Chief Executive Officer of Nissan Motor Company Ltd., affirmed that strong products will be key for Nissan to achieve sustainable and profitable growth in Malaysia.
Speaking at a special preview of the Nissan Sylphy, Ghosn outlined that clear business goals, a well-timed and concrete product introduction strategy, and a well-established service operations network are key drivers behind the dynamic partnership between Nissan and local partner Tan Chong Motor.
“Tan Chong Motor has represented Nissan in Malaysia for the last fifty years and have consistently demonstrated superior service and a focus on the customer. In January, Nissan recorded its highest monthly sales in Malaysia since 1985 with 3,093 units. And with over 10,000 bookings for the Grand Livina, we can look forward to more growth to come,” said Ghosn.
Sales success, attributed mainly to new products that were introduced into Malaysia last year, will be the foundation on which further growth will be built. Nissan has been progressively expanding its product range in Malaysia with the introduction of new products including the Latio and Latio Sport, the Grand Livina, and the new Sylphy, which will arrive in the second quarter of this year.
“We will earn our place in Malaysia by bringing products closely attuned to the needs and desires of our consumers. These products, offering customers a diverse and distinctive selection from the world of Nissan, will be backed by superior service through all phases of the ownership experience.,” Ghosn continued.
Ghosn is visiting Malaysia on the invitation of Khazanah Nasional Berhad to speak at the Khazanah Global Lecture series.
