Agreement - DaimlerChrysler
Jardine Matheson Hldgs Ld
13 July 2000
Agreement Reached with DaimlerChrysler regarding Distribution
and Exclusive Dealership Arrangements for Mercedes-Benz in
Hong Kong and Macau
The following press release was issued today by the
Company's 75%-held subsidiary, Jardine International Motor
Holdings Limited.
For further information, please contact:
Forrest International Limited
Sue Gourlay (852) 2501 7936
Agreement Reached with DaimlerChrylser regarding Distribution
and Exclusive Dealership Arrangements for Mercedes-Benz in
Hong Kong and Macau.
Hong Kong, 13th July 2000 -- Jardine International Motor
Holdings Limited today announced that it has signed a
memorandum of understanding with DaimlerChrysler AG ('DCAG'),
the manufacturer and master franchise holder of Mercedes-Benz
vehicles worldwide, in respect of the distribution and sale of
Mercedes-Benz products in Hong Kong and Macau. The
discussions on the arrangements were first announced by
Jardine International Motors in September 1999. The terms of
the new arrangements are summarised below.
From 1st July 2002, DCAG's subsidiary, Mercedes-Benz China
Ltd., will manage the wholesale activities of the Mercedes-
Benz operations in Hong Kong and Macau, which will comprise
principally of importing and other wholesale functions. Zung
Fu Company Limited ('Zung Fu'), a wholly-owned subsidiary of
Jardine International Motors and the existing distributor of
Mercedes-Benz vehicles in Hong Kong and Macau, will continue
as Mercedes-Benz China Ltd.'s exclusive dealer. Zung Fu will
manage the retail sales and after-sales aspects of Mercedes-
Benz operations and will continue with its existing sales and
service network.
The arrangements are in line with DCAG's strategy to have a
greater involvement with the distribution of Mercedes-Benz
products in the region.
Commenting on the new arrangements Jardine International
Motors' Chairman, Anthony Nightingale, said, 'We are pleased
to have reached agreement with DaimlerChrysler. While the
changes will have a significant adverse impact on the future
profitability of the Group, they do enable Zung Fu to maintain
its long-term relationship with DaimlerChrysler and the sale
of Mercedes-Benz in Hong Kong.'
Mr Karlheinz Michel, President of Mercedes-Benz China Ltd.,
said, 'We look forward to continuing to work closely with Zung
Fu whose performance has been key in developing and sustaining
this important market for Mercedes Benz.'
The new arrangements will have an initial effective term of
three and a half years from 1st July 2002, thereafter
the arrangements will continue subject to two-years' notice of
termination by either party. This compares to the current
rolling two-year notice period applicable to the existing
distribution arrangements. Definitive agreements are expected
to be finalised and signed by November 2000.
Jardine International Motor Holdings Limited is a publicly-
listed motor trading business within the Jardine Matheson
group. The Company has an international dealership and
distribution network with businesses located in Asia, the
United Kingdom, Continental Europe and the United States. Its
principal focus is on the sales and service of premium quality
motor vehicles, with a particular emphasis on Mercedes-Benz.
In 1999, the Group's businesses achieved consolidated revenue
in excess of US$2.8 billion and, including associates and
joint ventures, employed more than 11,500 people.
Issued by Forrest International Limited on behalf of Jardine
International Motors Management Limited.
For further information, please contact:
Jardine International Motors
Y K Pang (852) 2895 7242
Forrest International Limited
Sue Gourlay (852) 2501 7936
Matheson & Co., Ltd
Martin Henderson (44) 207 816 8135
Ludgate Communications
Richard Hews (44) 207 253 2252
This and other Company announcements can be accessed through
the Internet at 'www.irasia.com/listco/hk/jim'.
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