WMC flicks Foton
As WMC announced that it is no longer in a position to move forward as the appointed Foton distributor , WMC Group CEO Jason Pecotic says that WMC has issued Foton with a formal withdrawal from the Distribution Agreement (DA) for the Foton pick up business in Australia.
"We have withdrawn from the Distribution Agreement for a number of important reasons, most significantly uncompetitive pricing, particularly on the back of an unstable US Dollar and as a result of Japanese manufacturers lowering prices," said Jason Pecotic.
"The other aspect that particularly worried us was that, despite Foton's insistence on premium pricing for the upcoming P201 model, the fact is it has no history and given the previous model (SUP) has had quality issues which WMC has been monitoring closely with the South African importer, we don't believe this product can command a premium price," he said
"Despite protracted negotiations with Foton they would not meet the pricing model that we believe was appropriate for a vehicle such as this in the Australian market, in our view this would be 30 percent below its Japanese rivals," Jason Pecotic added.
"WMC is sad to end its relationship and wishes Foton good fortune in its future endeavours in Australia," he concluded.
Jason Pecotic made the statements in China where he was securing distribution rights with another leading automotive manufacturer, details of which will be revealed shortly.
While WMC has announced it will not be proceeding with distribution of Foton pick ups in Australia and NZ, Mr Pecotic emphasised that the company will continue to focus on its distribution of Higer Bus and JAC Trucks and light commercials.
"Higer continues to go from strength and this year has registered significant growth which has seen it become one of the top three bus sellers in Australia in 2011," said Mr Pecotic.
"In three years we have taken Higer from a start up with zero sales base to near market leadership," he added.
"We will be launching the first light duty JAC trucks to the market during November and we have a range of new JAC vans set to be launched here in early 2012," said Mr Pecotic.
"WMC is also preparing to import Joylong vans into Australia and will have the first example of this new brand in the country around the end of November ahead of a full launch early in 2012.
"Along with these situations WMC we are continuing to explore other brand opportunities that we will continue to develop and exploit," he said.
WMC Group is based in Sydney and has been the Australian distributor for Higer buses and coaches since 2006 and the Australian distributor of JAC Trucks since 2010.
WMC's Australian new head office and distribution centre is based at Milperra in Sydney's South West to serve its JAC, Higer and other automotive operations and the company has been recruiting additional staff while building its networks to market the various commercial vehicle products it is marketing around the country.