Nuevva is finalizing a new arrangement with Prestige Motors covering management and sales and marketing activities based in the Malian capital of Bamako. The pending contract will see Nuevva taking an equity stake commensurate with the sales performance and new strategic success of the Malian automotive sector company. Since early 2011, Nuevva has been a valued partner of Prestige, conducting the operational management of the dealership.
Prestige Motors, the latest and most modern automotive dealer in Mali, is currently sells BMW and Land Rover vehicles as well as Honda Motorcycles in Mali. Prestige previously commercialized Ford motor vehicles through a relationship with AES Kjaer. In the first quarter after the launch of Ford over one hundred units were sold. When AES Kjaer closed its global operations, this coincided with significant changes in Ford’s Africa model lineup and the discontinuation of the previous model Ranger pickup. Ford product stopped flowing to Prestige Motors and Ford temporarily pulled out of the country.
Prestige Motors is owned by a group of investors led by Tahirou Sy. The company is now represented internationally by Nuevva, and is poised to become the franchise for a major automotive manufacturer in Mali. Prestige has the opportunity pipeline, the physical plant and the personnel to provide a volume player with a high quality professional presence in a growing market in which it is presently unrepresented.
Sustained growth in commodity prices over the last decade, in conjunction with political stability, have driven expansion in Mali’s extractive industries and are helping Mali develop into a regional commercial hub. The Malian economy delivered 15.85% compound annual growth between 2000 and 2008 (Source: UN) and the economy is poised to continue expanding. The growing economy is consuming more vehicles, the majority of which are used grey market imports from Europe and North America. The buoyant economy is increasing demand across every vehicle segment, including new vehicles for both fleet and individual customers.
Before Nuevva came into the picture, Prestige was not well positioned as an automotive player. Despite having made the necessary investments in local infrastructure, the company had been completely dependent on an international partner for supply and management guidance. Nuevva’s role has been to create valuable linkages with the automotive sector that build Prestige’s capacity to achieve its business goals. Nuevva’s strategy is to transform Prestige from a purely automotive entity to a full fleet services provider, focused on institutional fleets. Nuevva has identified spare parts, quick lube, and remote vehicle support as key profit drivers in the Malian market; and has targeted over one hundred major fleet clients within Prestige Motor’s catchment area. Nuevva has already negotiated key supply arrangements with filtration, spare parts, and accessory manufacturers, and will start selling these products in country in Q2 2012.