JOINT-VENTURE BETWEEN AUTO BAVARIA SDN BHD AND BMW HOLDINGS BV (JV)（二）.docVIP

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JOINT-VENTURE BETWEEN AUTO BAVARIA SDN BHD AND BMW HOLDINGS BV (JV)（二）.doc

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JOINT-VENTURE BETWEEN AUTO BAVARIA SDN BHD AND BMW HOLDINGS BV (JV)（二）

JOINT-VENTURE BETWEEN AUTO BAVARIA SDN BHD AND BMW HOLDINGS BV (JV) 1.0 INTRODUCTION The Board of Directors of Tractors Malaysia Holdings Berhad (Company or Tractors) wishes to announce that Auto Bavaria Sdn Bhd (SIME), a wholly-owned subsidiary of the Company, and BMW Holdings BV (BMW BV), a wholly-owned subsidiary of Bayerische Motoren Werke Aktiengesellschaft (BMW AG) had, on 15 July 2003 entered into a joint-venture agreement (Agreement) to set up a joint venture company (JVC) to undertake on a sole and exclusive basis the wholesale functions for BMW Group products (excluding Rolls Royce passenger cars) in the Malaysian market. 2.0 SALIENT DETAILS OF THE AGREEMENT 2.1 Corporate Name The name of the JVC shall be BMW Malaysia Sdn Bhd or such other name including the word BMW as may be approved by the relevant Malaysian authorities. 2.2 Objectives of the JV The main objective of the JV is to restructure the existing arrangements in Malaysia between BMW BV and SIME in relation to the distribution of BMW Group products by the creation of a joint venture company which will undertake, on a sole and exclusive basis, all the wholesale functions for BMW Group products in the Malaysian market including: (i) sale at retail level in Malaysia of completely-built-up (CBU) and completely-knocked-down (CKD) BMW and CBU MINI branded passenger cars, BMW motorcycles as well as accessories and spare parts (collectively, BMW Group products); and (ii) establishment and maintenance of dealer network and aftersales service. 2.3 Other Related Agreements In connection with the Agreement, Tractors Malaysia (1982) Sdn Bhd, a wholly-owned subsidiary of the Company, on 15 July 2003 entered into the following agreements: (i) Assembly Agreement with BMW AG, for the sole and exclusive right to import CKD kits and assembly parts for the assembly of CKD BMW passenger cars for sale to the JVC or any other BMW Group company; (ii) Local Content Parts Contract with BMW AG for the re