PETALING JAYA: The Naza Group is shedding the Kia and Peugeot franchises as part of its move to overhaul the highly diversified organisation that has been hammered by the Covid-19 pandemic.
The sale of the two brands has been going through the rumour mill for months until it was recently confirmed.
Naza Corp Holdings Sdn Bhd executive chairman and CEO SM Nasarudin SM Nasimuddin told The Edge business publication that he expected the process to be completed by the end of this year.
Sale of the two brands have suffered in recent years and Naza had found it increasingly harder to make a profit in an industry that is tightly regulated and where the principals set the pricing, said Nasarudin, who also spoke of "razor-thin margins" amid a challenging environment.
Along with the sale of Kia and Peugeot, the Gurun plant run by associated company Naza Automotive Manufacturing Sdn Bhd (NAM) would also be up for disposal.
The plant, set up in 2004, has an annual production capacity of 50,000 units and assembles Peugeot, Citroen and Kia cars.
Nasarudin said the sale of the plant is being worked out with the PSA Group, the parent company for Peugeot, Citroen, DS, Opel and Vauxhall.
While the two key assets would be dropped, the privately held Naza Group has no intention to exit the auto business. It still has Ferrari, Maserati, Ducati, DS, Citroen and Mercedes-Benz dealerships to fall back on.
The company also has stakes in property development, construction, engineering, telecommunications, infrastructure and asset management.
Meanwhile, some potential bidders for the Kia and Peugeot franchises include Mazda distributor Bermaz Auto and DRB-Hicom.
