AAM on the road to recovery


  • Nation
  • Saturday, 14 Jan 2017

PETALING JAYA: The country’s premier auto breakdown service is revving itself back to full strength in two weeks.

The Automobile Association of Malaysia (AAM) has been servicing motorists at 70% of capacity, dragged down by an internal crisis.

“When it is back to full service, the waiting period will be around 40 minutes,” said AAM chairman Tunku Mudzaffar Tunku Mustapha.

He said improvements were in store with the breakdown service having been outsourced to a third party.

The breakdown service involves minor on-the-spot repairs and replacement of batteries. Towing service is also provided.

“We also have batteries from our supplier which we store in our depot. If calls are not being attended to quickly, it could mean it’s peak time,” Tunku Mudzaffar added.

He said although the national motoring body was faced with challenges, efforts were being made to put things right.

On AAM’s financial state, Tunku Mudzaffar clarified that the body’s debt stood at RM5mil and not RM14mil as reported earlier.

He said the issue of outstanding salaries of staff for the month of December would be resolved in two or three months.

In a statement yesterday, AAM said the memorandum of agreement (MoA) signed with Stoper Industry Holdings Sdn Bhd was only for a two-month trial.

It explained that the termination of the contract was due to non-compliance of the rules of the association, adding that the intended joint venture was not signed.

It was reported that the agreement with Stoper was formalised on Nov 1 but was terminated earlier this month.

AAM said the planned joint venture with the defence equipment manufacturer was aimed at capitalising on AAM’s operational and technical expertise with Stoper’s marketing and consumer reach.

“It was not intended to be a takeover of any sort, but a synergy of two entities to address the challenging market. The AAM constitution does not provide for a takeover,” it said.

According to AAM annual reports, the association has been suffering losses since 2008, with its biggest deficits in 2010 (RM2.9mil) and 2013 (RM2.15mil).

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Automotive , AAM

   

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