Barloworld Automotive announced that it has sold its remaining 50% shareholding in Subaru Southern Africa to Toyota Tsusho Corporation. The value of the transaction, which was effective from August 31st 2010 was undisclosed. The listed distribution group sold the initial 50% to Toyota Tsusho in November 2008.
Mr Martin Laubscher CEO of Barloworld Automotive said that the transaction further aligned the firm to its core business model.
Mr Sibani Mngomezulu spokesman off Barloworld said that Subaru Southern Africa was an importer and distribution business for a niche product that was not a strategic fit for Barloworld Automotive.
Mr Mngomezulu said that Barloworld Automotive comprised fleet service, leasing, car rental and new and used vehicle retail businesses and, unlike the other vehicle brands it represented, it was unable to put huge volumes of Subaru into its rental or fleet businesses. In addition, with all the other vehicle brands, it represented these brands as a dealer rather than a principal.
Mr Mngomezulu added that the sale of the remaining shareholding in the business was prompted by Barloworld and the transaction should not have any impact on its employees because Subaru Southern Africa was a going concern. He said the intention always had been for Barloworld to sell its remaining stake at an appropriate time to Toyota Tsusho.
According to Mr Mngomezulu, the sale of the initial stake in the business took into account the interests of customers and the principal. He said it was intended to get Toyota Tsusho to come into South Africa and to work with the Japanese trading company to help it understand the terrain and product.
Toyota Tsusho appointed its own managing director when the joint venture was established and the initial shareholding was sold. Since then it has been running the business with Barloworld's support. Subaru entered the South African market in 1992 and was subsequently acquired by Barloworld.
Mr Mngomezulu said that Barloworld had taken on the Subaru brand at a time when imported vehicle brands were entering the South African market and all motor groups were positioning themselves in line with these developments. He added that Barloworld took a view to align itself with Subaru but at that time it was only a dealer group. Its strategy changed over time, particularly after it acquired Avis in 2004.
