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Daihatsu to cease distribution in South Africa

27th February 2015

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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Daihatsu is set to cease distribution in South Africa.

The range on sale domestically comprises the Sirion hatchback, Terios small sports-utility vehicle and Gran Max bakkie.

Imperial Daihatsu, the importer of the Japanese brand, will cease selling new vehicles in the local market by the end of March, but not by its own volition, says Imperial Daihatsu GM Pedro Pereira.

“The decision to stop selling Daihatsus in South Africa was taken by the OEM [vehicle manufacturer].

“We, as the importers, have done really well with the brand and would have loved to continue distributing Daihatsus in South Africa.”

Pereira says the Japanese manufacturer’s decision to halt distribution in South Africa has been led by a decision to move away from Western markets, in favour of Asian markets.

“Daihatsu pulled out of Europe, Australia and New Zealand a few years ago, and now it is our turn.”

According to a statement by Daihatsu the move to pull out of Europe in 2013 was the result of “increasing development costs to comply with regulations in Europe, such as those related to carbon dioxide emissions, and the appreciation of the yen against the Euro, which have had a negative impact on business results and made selling vehicles manufactured in Japan by Daihatsu no longer viable. It was made from the perspective of streamlining operations and focusing on specific areas of business”.

Pereira says Imperial Daihatsu has signed a service and after-sales contract with Daihatsu in Japan, which will allow it to honour warranty, service and parts supply obligations in South Africa.

“Customers will be able to continue servicing at the same dealers where they have serviced in the past.”

According to the Imperial Daihatsu website, the brand was on sale at around 50 dealers in South Africa.

Pereira does not want to divulge the number of Daihatsus on South African roads.

He says the staff at Daihatsu’s head office will move to other brands within Imperial, which is a multibrand importer.

“The staff at the dealerships will be absorbed into our multifranchise dealers.”

 

Edited by Creamer Media Reporter

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