Fiat, Naza to debut at S'pore motor show

Business Times, Tuesday, 23rd August, 2006

Others taking part in November's show include Alfa Romeo and Ferrari

By SAMUEL EE

A FEW new makes will be unveiling their cars at November's Singapore Motorshow,

even as some previous participants decide to give this year's event a miss.

Biennial brand-building platform: Rental space and setting-up costs can come up to as much as $100,000 to $200,000, excluding the exhibits
Fiat, Naza, Perodua and TD2000 will be taking part for the first time at the eighth edition of the show, which is organised once every two years by the Motor Traders Association of Singapore (MTA).

They will join Alfa Romeo, Ferrari, Honda, Hyundai, Lamborghini, Lexus, Maserati, Mazda, Nissan, Ssangyong, Subaru, Suzuki and Toyota at the Suntec City from Nov 10-19.

But giving this year a miss are Peugeot, BMW, Mini, Chevrolet, Saab, Opel, Porsche and Rolls-Royce. The first two are brands represented by Sime Darby companies, while Chevy, Saab and Opel are owned by General Motors, the world's biggest carmaker. The last four marques are distributed by the Eurokars Group of Companies.

All eight were part of the 2004 Motorshow. But this year, they join a string of names which have refrained from participating in the MTA-organised event.

They are Mercedes-Benz, Mitsubishi and Kia (all of which come under the Cycle & Carriage umbrella), Volvo and Jaguar (both from the Wearnes group), Ford (part of Sime Darby), Renault and Volks wagen.

Although the people behind the brands refused to comment on the reason for their non-participation, it is understood that cost is one factor.

'Rental space and setting-up costs can come up to as much as $100,000 to $200,000 excluding the exhibits,' says the manager at a smaller dealership in Leng Kee Road. 'To do it properly, you need about a quarter of a million dollars per brand.'

As a benchmark, authorised Toyota and Lexus distributor Borneo Motors Singapore spent $700,000 on its stand two years ago, which was the biggest at the show.

'If we are going to spend that amount of money, we have to look at the returns and whether the investment can be justified,' says one source.

Another factor is that support from principals is lower this year as their resources are being put into bigger shows in the region, like the Bangkok and Sydney shows.

'Principals are important because they share the costs with us. The support can be substantial, from flying in the exhibits to providing the stands which have to conform to corporate identity standards,' adds the source.

But the MTA says that as the region's premier motoring event, the Singapore Motorshow has always received enthusiastic response.

'This year is not an exception,' says MTA president Chia Yong Sian. 'Three months before the show, there is already an equal number of car brands who have confirmed their participation, including first-time exhibitors, and there is an increase in the amount of space they are taking up, compared with the 2004 show.'

He says some exhibitors have also significantly increased their exhibiting space. There is also an increase in sponsors.

'All this indicates the growing value the industry attaches to the show,' says Mr Chia. 'It is an important biennial brand-building platform and exhibiting car brands know the value of channelling time, effort and money to put up a good show.'

This year, part of the top level - of the three levels the show traditionally occupies at Suntec City - will be converted into a 'green' area.

Exhibitors in this corner - measuring about 200 square metres - will not be charged for displaying their environmentally-friendly vehicles like petrol-electric hybrids and fuel cell-powered cars.