General Announcement::PT Astra International - Astra and Toyota to Strengthen Sales and Distribution Network in Indonesia
Issuer & Securities
JARDINE CYCLE & CARRIAGE LIMITED
JARDINE CYCLE & CARRIAGE LTD - SG1B51001017 - C07
Date &Time of Broadcast
Announcement Sub Title
PT Astra International - Astra and Toyota to Strengthen Sales and Distribution Network in Indonesia
Submitted By (Co./ Ind. Name)
Ho Yeng Tat
Group Company Secretary
Description (Please provide a detailed description of the event in the box below)
We attach for information the English translation of the notification dated 3rd June 2015 by our 50.1% subsidiary, PT Astra International Tbk ("Astra"), to the Financial Services Authority (OJK) and the Indonesian Stock Exchange, relating to Astra (as main dealer) and PT Toyota-Astra Motor ("TAM")(as distributor) having signed a memorandum of understanding today for the purpose of strengthening TAM and the entire Toyota sales and distribution network in Indonesia ("MOU"). TAM, the exclusive nationwide distributor of Toyota products in Indonesia, is a company jointly controlled by Astra and Toyota Motor Corporation ("TMC"), with Astra holding 51% and TMC holding the remaining.
Currently, TAM distributes Toyota products to five main dealers (including Astra through Auto 2000), which in addition to retailing directly to consumers, can re-distribute to sub-dealers who also sell directly to consumers. Astra redistributes to sub-dealers. Under the MOU, all sub-distribution functions, such as logistic and marketing, which are currently performed by the main dealers will be integrated into TAM and therefore the main dealers will only continue to retail directly to consumers (the "Realignment"). Following the Realignment, TAM would continue to distribute not only to Astra and other main dealers but also directly to sub-dealers.
The Realignment is to be effected upon the signing of a new dealer agreement between Astra and TAM, which currently is being discussed by the parties. The new dealer agreement is expected to be signed in July 2015 and the Realignment is expected to complete no later than March 2016.
Astra believes that the Realignment will be beneficial to all stakeholders of Astra as well as its partners and customers.
Total size =111K