Subaru Distributors Motor Image Set For Major Management Shake-Up?

There seems to be a major change in leadership and management occurring at Tan Chong International Limited (TCIL) group, specifically at its Motor Image Group (Motor Image) arm - the appointed regional distributor of Subaru.

It appears Motor Image Group (Motor Image), the Singapore-rooted firm part of the massive Malaysian-linked Tan Chong International Limited (TCIL) Group, is set for a major management shake-up and restructuring, particularly at its very top echelon.

For context, Motor Image is the appointed regional distributor of Japanese auto brand Subaru, and it is present in multiple markets across ASEAN – Malaysia included. Arguably one of the firm's biggest and top-selling markets here is the Philippines, and word about this impending management restructuring comes from the group’s arm based there.

A report by Visor.ph published earlier this week indicates that long-time TCIL deputy chairman and Motor Image group CEO Glenn Tan (left) has been relieved of leadership duties. The report further cites that former head of regional sales at Motor Image Philip Lu (right) now heads the group.

Earlier this week, a report published by Philippines-based motoring website Visor.ph had quoted a source from within Motor Image Pilipinas indicating that Glenn Tan, long-time TCIL deputy chairman and Group CEO of Motor Image, has been relieved of leadership duties for the company. Again, for context, Tan is also part of the firm’s founding Tan Chong family. 

The same source also indicated that Motor Image’s former head of regional sales Philip Lu now heads the group. The permutations leading up to this bombshell change of company heads remains unclear, as is the fate of Tan’s continued role and capacity in the group. Take note that none of these have been officially confirmed or announced yet.

Visor.ph’s report then continues to detail a change in management policies, many of which centred upon one key issue – micromanagement from Singapore. Moving forward, the report details that Motor Image officers working for the various distributors will now report to their respective country managers.

Tan (centre, fourth from right) has long been touted as the 'supremo' of Motor Image, and widely credited for the firm's widely criticised centralised decision-making policy that led to widespread allegations of 'micromanagement' issues.

Those well versed with the local – and regional – automotive business landscape would tell you this seems impossible. That’s because historically, Motor Image’s Singapore headquarters stands as the controlling hand behind the Subaru brand in the region, and no efforts for which can proceed without approval from Glenn Tan personally.

This centralised decision-making policy has long been touted by many observers as the bane of Motor Image’s operation. Many have criticised this for hampering its local market responsiveness and subsequently slow sales pace. 

Another key issue borne out of which is Motor Image’s notorious ‘higher than average’ employee turnover rates. Moreover, it seems this issue is NOT ‘isolated’ to specific markets or management levels and department, and this has also led to stagnated business growth.

Now, Motor Image's slow and poor sales issues are exacerbated by the recent shift to a CBU Japan-only business model announced by Subaru brand principals recently, thus rendering ASEAN-based CKD operation set up by the firm prior redundant.

This also perhaps explains why key Subaru models arrived late to markets in where Motor Image operates. Additionally, this issue is now exacerbated by the fact that Subaru brand principals recently elected to shift to a CBU Japan-only business model that has rendered Motor Image’s regional ASEAN-based CKD operations established prior redundant overnight.

Though still unconfirmed, the supposed leadership and subsequent operational management changes is a promising sign and could perhaps be a game-changer. However, it will take time before said restructuring efforts reflect positively upon both Motor Image’s and the Subaru brand’s bottom lines from ASEAN market sales.

How these reported changes, though unconfirmed still, in Motor Image's top management and operational procedures will affect Subaru brand operations in Malaysia remains to be seen.

This is especially true on the local front. Apart from the obvious absence of current metal like the latest third-gen Subaru Crosstrek (successor to the Subaru XV) and sixth-gen Forester, CariCarz.com has also learned from industry colleagues DSF.my of Motor Image Malaysia’s scaled-down Malaysian dealership network.

Dwindling sales and consumer interest, plus the wave of upstart new Chinese marques – including one distributed by one of Tan Chong Group’s own Malaysian arm! – reportedly saw plenty of these dealers ‘retiring’ their Subaru outlets and defecting towards said new Chinese makes. There’s also unconfirmed reports of dealers flogging old stocks at heavy discounts.

Given what we’ve detailed, how the still unconfirmed management and leadership change at Motor Image could improve the situation for the Subaru brand here in Malaysia remains to be seen. As this is a developing situation, it will take time before any of us get a clear outlook. We’ll have more once additional facts are confirmed.