Wearnes close to clinching Aston Martin dealership
In its favour are its brand portfolio, financial background, professional managers
Singapore
WEARNES Automotive could be very close to clinching the Aston Martin franchise for Singapore and is said to be in deep negotiations to seal the deal soon.
Last month, The Business Times reported that "three strong suitors" are wooing the iconic British sports car marque here. So it looks like Wearnes may have turned out to be the strongest of the trio.
Wearnes represents Bentley, Jaguar, Land Rover, Infiniti, Volvo and Renault in Singapore. The company acquired the McLaren brand in 2011 but voluntarily relinquished it earlier this year to the Eurokars Group of Karsono Kwee, whose collection of premium makes here includes Rolls-Royce and Porsche.
The Aston Martin brand is best known for being fictional British secret service agent James Bond's car of choice, with a prestigious automotive heritage that some luxury brands can only dream of. But the shake-up of Singapore's super-luxury market, sparked by the vehicle financing restrictions and progressive taxes introduced in February 2013, has caused it to flounder.
Aston Martin Singapore has been the distributor here since 1994 and was understood to have put up the brand for sale, along with its existing premises and stock of cars.
The company, which is headed by managing director Derek McCully and chairman SK Djeng, owns a sprawling 3S facility - showroom, service and spare parts - in Tuas, as well as a 10,000 square foot showroom off Leng Kee Road purchased in 2012.
But potential buyers probably baulked at the hefty price tag for both property and stock.
Given Wearnes' own substantial plot of land at 45 Leng Kee Road, among others, it does not look like Aston Martin Singapore's premises will be part of the deal.
As for the stock, the numbers are said to be not insignificant, so it is not certain that they will be absorbed in their entirety. What could possibly happen is that only part of it will be transferred over to the buyer.
In the first five months of 2015, only two Aston Martin cars were registered, compared with 10 for Lamborghini and 23 for Ferrari, according to the Land Transport Authority. It is understood that any newly appointed dealer will have to bring sales back up to pre-February 2013 days. In 2011 and 2012, Aston Martin registered 25 and 22 cars respectively.
Aston Martin models range from more than S$500,000 to S$1.2 million apiece. Given the current environment for super sports cars, and the fact that the new dealer will have to play catch-up with its direct competitors, it will be no easy feat.
But if anyone can do it, it should be Wearnes Automotive. The company is one of the oldest motor traders in Singapore and has long been associated with the distribution of luxury and ultra-luxury makes in the region.
Some in the motor industry have said that Aston Martin could view it as the most attractive candidate because of its brand portfolio, financial background and pool of professional managers.
