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Monday, December 23, 2013

Financial arm of Malaysia's BMW group optimistic on 2014 growth prospects


Published: Monday December 23, 2013 MYT 12:00:00 AM 
Updated: Monday December 23, 2013 MYT 7:18:40 AM

KUALA LUMPUR: BMW Financial Services, the financing arm of BMW Group Malaysia, is optimistic about its growth prospects for next year despite the rising cost of living due to the implementation of the various government subsidy rationalisation measures.

“We think the outlook is generally positive. Growth is still there,” said BMW Financial Services managing director Mike Wetherell.

“We tend to complain through it but by the end of the year, we realise it was not so bad,” he said, noting that conditions slowed down this year leading up to the general elections, but picked up soon after.

After the rise in sugar price, tfuel and electricity tariff next month, a planned toll hike is next on the list.

“Next year should be a reasonable year,” said Wetherell.

“According to him, BMW approves around 10,000 loan contracts per year.

“We see that growing in 2014,” he said.

Wetherell said BMW provided financial services to its customers as well as its dealers.

“For customers, we provide financing to around 50% of all BMWs sold.”

The company also provides financing to around 60% and 70% of all Mini Coopers and BMW motorcycles sold respectively.

“A portion of the cars sold go to large corporations and government agencies and they might have different (loan) arrangements. We also provide financial assistance to dealers to for instance, help stock up their showrooms,” said Wetherell.

According to him, the number of customers that defaulted in their loans on a yearly basis was usually quite nominal.

“It’s very low in the low single digit.”

On another matter, he said there would be uncertainty leading up to implementation of the Goods and Services Tax (GST) in April 2015.

“We won’t know if people will hold back or buy.

“And once it’s implemented, we have to work through it,” he said.

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