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24th October, 2011

Vehicle importer and distributor, WMC Group has announced that it is no longer interested in distributing Foton utility vehicles.

WMC Group CEO Jason Pecotic says that WMC has issued Foton with a formal withdrawal from the Distribution Agreement (DA) for the Foton business in Australia.

"We have withdrawn from the Distribution Agreement for a number of important reasons, most significantly uncompetitive pricing" said Jason Pecotic.

"The other aspect that particularly worried us was that, despite Foton's insistence on premium pricing for the upcoming P201 model, the fact is it has no history and given the previous model (SUP) has had quality issues which WMC has been monitoring closely with the South African importer, we don't believe this product can command a premium price," he said. (copyright image)
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"Despite protracted negotiations with Foton they would not meet the pricing model that we believe was appropriate for a vehicle such as this in the Australian market, in our view this would be 30 per cent below it's Japanese rivals," Jason Pecotic added.

Jason Pecotic made the statements in China where he was securing distribution rights with another automotive manufacturer, details of which will be revealed at a later time.

While WMC has announced it will not be proceeding with distribution of Foton utes in Australia and NZ, Mr Pecotic emphasised that the company will continue to focus on its distribution of Higer Bus and JAC Trucks and light commercials.

"We will be launching the first light duty JAC trucks to the market during November and we have a range of new JAC vans set to be launched here in early 2012," said Mr Pecotic.

"WMC is also preparing to import Joylong vans into Australia and will have the first example of this new brand in the country around the end of November ahead of a full launch early in 2012."

"Along with these situations WMC we are continuing to explore other brand opportunities that we will continue to develop and exploit," he said.

WMC Group is based in Sydney and has been the Australian distributor for Higer buses and coaches since 2006 and the Australian distributor of JAC Trucks since 2010.


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