Here’s something we weren’t expecting this morning – the Naza Automotive Group has announced a “strategic realignment” of its business as it seeks long-term profitability and liquidity. The company is targeting a “significant uplift” in both over the next three years, and it plans to do so by focusing on its core brands.
UPDATE: A Naza Italia representative has clarified that both Maserati and Ducati will remain as key parts of the Naza Automotive Group.
It’s no surprise that Naza is turning to its more mainstream franchises to drive growth. In Suzuki, Naza Eastern Motors (NEM) is already in the midst of expanding its dealer network by more than 100% over the next three years, on top of investing in digital platforms as it shoots for a yearly increase in Suzuki sales.
Naza also has a lucrative Mercedes-Benz dealership in the shape of NZ Wheels, and to that end the company is planning to revamp its Bangsar showroom with the latest Mercedes-Benz corporate identity. The refreshed facility will open its doors in Q3 this year.
This being a “realignment”, one can expect some bad news for Naza’s other brands. The company said as much in its press release, remarking that it wants to “gradually reduce our dependency on lifestyle and niche segments that no longer align with our latest objectives.” And while it was not revealed which brands it plans to cull, the fact that Maserati and Ducati were not mentioned once is telling.
It’s no big secret that Maserati has not been performing well lately, not just in Malaysia but around the world. Despite a comprehensive remodelling of its lineup – as well as introducing the well-received MC20 – sales have been so dire that rumours have reemerged that Stellantis could very well sell its storied Italian sports car marque, a move hastened by US tariffs.
Ducati’s situation is far less shaky, thanks to continuing strong sales and profitability. But with Naza needing to invest heavily into Suzuki and Mercedes-Benz to prop up its auto business, it looks like even Borgo Panigale isn’t safe from the chopping block.
That’s not to say that there’s no room to grow the business. Naza says it is looking for “new brands and opportunities, including electric mobility.” The company also intends to enter a new ASEAN market this year, focusing on the brands it already operates in Malaysia.
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