Published April 1, 2009

Naza Italia launches Ferrari showroom in M'sia despite slump

RM20m centre comes a year after it was appointed sole importer, distributor

By PAULINE NG
IN KUALA LUMPUR

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DESPITE the current economic slump Ferrari's biggest showroom outside of Italy was officially launched in Malaysia to much fanfare yesterday by the country's monarch.

New niche: (from left) Malaysia's monarch with Mr Faisal and Int'l Trade Minister Muhyiddin Yassin at the opening of the showroom

Naza Italia - established by the Italian luxury fast-car maker and its local partner, the Naza Group of Companies - is a 45,000 sq ft state-of-the-art service centre, a 'lifestyle boutique' offering 'something for anyone who lives and breathes Ferrari and Maserati', declared its chief executive SM Faizal Nasimuddin at the opening.

The RM20 million (S$8.3 million) flagship centre comes after just a year of Naza Italia's appointment as the sole importer and distributor for Ferrari. It got the same status for Maserati a month ago.

'It's a very niche market,' observed president and CEO of Ferrari Asia-Pacific, Marco Mattiacci. 'The size of the showroom is not related to the volume of sales,' he said of the 20 Ferraris sold last year.

He said Malaysia would become 'a key market' in the region in the next two to three years, and complimented Naza Group founder SM Nasimuddin Amin.

'Nasimuddin approached me two years ago and I was impressed with his vision and achievements,' he said of the businessman who died last year of cancer at the age of 53.

Describing him as 'one of Malaysia's most talented entrepreneurs', he said, Mr Faizal, his 29-year old eldest son who now helps the group, was realising that dream (of a flagship store).

Mr Nasimuddin was regarded as Malaysia's motor czar, successfully negotiating the re-badging of Kia and Peugeot vehicles as Naza vehicles, but also cleverly parlaying the government's car import licensing system into a vast automotive business empire.

Because a licensed permit, or AP issued by the trade ministry is required for imported vehicles, many licensee firms - mainly Malay majority-owned ones - benefited from the system as often such APs were sold to motor distributors for tens of thousands depending on the make of the vehicle.

Mr Nasimuddin was a major AP recipient and a sought-after partner given his contacts with the government.

The Straits Times had previously reported the Malaysian tycoon and Singapore businessman Alfred Tan Chor How and his son Edward had been partners of privately held Next Car which had since 1996 owned the franchise to import Ferrari cars into Malaysia.

But a disagreement over the direction of the business in about 2007 led to a major fall-out between both parties and allegations by the Tans that they were harassed and their business targeted by the authorities.

In August of the same year Ferrari terminated the franchise agreement with Next Car, and in April appointed Naza Italia its sold distributor and importer. Mr Mattiacci declined to comment on the matter yesterday.

There are more than 250 Ferrari and about 50-60 Maserati car owners in the country. The Maserati models at Naza Italia are priced from RM1.1 million, while the Ferrari models cost upwards of RM1.6 million.