Peugeot dealership switches brands

Yontrakit Automobiles, the sole distributor of Peugeot cars in Thailand, has announced that Peugeot cars are now only available in Bangkok at the Blue Box dealership on Sukhaphiban 3 Road, which also houses its head office.

The sole remaining distributorship of Peugeot cars in Thailand is Yontrakit Automobiles’ dealership in Bangkok on Sukhaphiban 3 Road.

A showroom for the French automobile brand on Rarm Intra Road has now become a Volkswagen sales outlet.

The switch follows a business conflict between two brothers in the Leenutaphong family, Mr Pongrit and Mr Phasuphong, who took over the distributorship after the family auto business was restructured to demarcate the brands managed by each member.

The Leenutaphong family has European, Chinese, Malaysian, Korean and Japanese car brands in its portfolio.

Mr Phasuphong has now sold his entire interest in the Peugeot distributorship to his elder brother Mr Pongrit, who now solely oversees the business.

After abruptly withdrawing from the Peugeot car dealership, Mr Phasuphong turned to Volkswagen, currently distributed by Thai Yarn Yont, which is owned by Vithit Leenutaphong, a cousin of Mr Pongrit and Mr Phasuphong.

Mr Phasuphong's Blue Box showroom on Rarm Intra has now become a Volkswagen sales outlet.

Mr Phasuphong has said he withdrew from the Peugeot dealership not because of conflicts with his elder brother but to avoid high investment and business risks amid the current poor outlook for the automotive business.

Peugeot had plans to assemble some models in Thailand, which needed additional investment to that for stocking cars and parts.

Mr Phasuphong said he was convinced that Volkswagen has more promising prospects by its plans to aggressively move into the Thai auto market.

Switching to the German brand also involved no investment in promotion or in stocking cars and parts because Thai Yarn Yont would absorb these costs.

Yontrakit Automobiles will open a state-of-the-art Blue Box showroom in Soi Thong Lo on Sukhumvit Road, provisionally in September this year.

Two more Peugeot Blue Box centres, with the look and standards of the company's global Blue Box template, will open this year in Hat Yai in Songkhla province and in Muang in Surat Thani.

Yontrakit Automobiles expects to have 20 Blue Box and service point dealerships across Thailand by the end of 2010.

To help re-establish Peugeot in Thailand as a premium brand, the company has also improved its sales and after-sales services and revamped all its internal operations and means of communicating with its customers.

"Over the past year we have worked hard and managed to create a very strong base on which to grow," said Mr Pongrit. "The cars we have in our portfolio, which includes the 206, 207CC, 407 Facelift sedans and the Expert van, are all excellent vehicles that have their own niche in the market that we see growing year-on-year."

Relate Search: Yontrakit Automobiles, Peugeot cars