BMW takes over distribution in KL

KUALA LUMPUR: German luxury car maker BMW will take over the distribution of its vehicles in Malaysia ahead of market liberalization here in 2005, a report said Monday.

BMW will sign a pact Tuesday with local franchise Sime Darby Bhd. to set up a joint venture company, in which it will hold a 51 percent stake and Sime the balance, the New Straits Times reported.

The move ended months of negotiations between the two parties and came after BMW decided last year to make Malaysia the regional center for its Asian operations, it said.

Sources were quoted as saying that Sime, which sells around 2,000 BMW vehicles a year in the country, would retain its assembly and retail rights.

The Bavarian company is expected to set up an office in the Cyberjaya township south of Kuala Lumpur as well as a distribution base in the Port of Tanjung Pelepas in southern Johor state, the daily said. -- AFP