One of Malaysia's oldest car distributors is bouncing back.
We earlier reported that Edaran Tan Chong Motor (ETCM) was hit with an extremely large and very overdue bill from the Royal Malaysians Customs Department (RMCD) to the tune of RM 180 million.
It turns out that the amount was settled out of court and reduced to RM 109 million, with RM 10.81 million paid upfront and the rest to be paid over the next 36 months. That works out to around RM 8.1 million a quarter, or RM 2.7 million a month.
This excise duty bill was accumulated from November 2016 to October 2019, and with this arrangement RMCD has agreed that the bill has been settled accordingly. The specific subsidiary of ETCM that had been hit with this bill was Tan Chong Motor Assembly (TCMA) which has manufacturing facilities in both Malaysia, as well as Vietnam and Myanmar.
TCMA is responsible for producing both passenger and commercial vehicles for Nissan and Renault, the two core brands of ETCM, as well as doing contract assembly for Subaru, Mitsubishi, UD Trucks, Foto, and Bison trucks.
The news has definitely impacted the share price, which fell to RM 1.18 as of writing. It has been on a steady decline over the last five years, with losses last year and this year being attributed to repayment of the overdue taxes - and of course, COVID-19.
For more latest car news, reviews, car buying guides and videos visit us at Carlist.my Auto News.
Check out all the best new & used car deals in Malaysia at Carlist.my.
Sell your car fast with the best offer? Visit us at CarlistBid.my.
Get the latest new car promotions at New Car website now.