These days, it seems that everything we have to buy is going up in price. Mr Inflation is affecting everything and manufacturers are saying that they ‘can’t help it’ since production and transport costs have risen. Well, believe it or not… one company is bucking the trend and actually pushing prices down: as of August 1 2008, Chevrolet replacement parts will be lowered by as much as 67% - and this reduction is not a one-time promotional exercise but a permanent adjustment of prices.

The price adjustment was announced this morning by Hicom-Chevrolet CEO Yukontorn Wisadkosin who explained that the move is not so much inspired by the present economic situation in Malaysia but was something which was already planned from the time Hicom-Chevrolet was established last year.

“This news should not be surprising because we promised from the start to lower parts prices and reduce the cost of ownership,” she said. “Besides lowering parts prices, we also said we would improve our service quality and today, we have delivered on both promises, signifying an important step in restoring trust and credibility for the Chevrolet brand in Malaysia.”

Some of the parts which will cost less from August 1 2008

“Even though we knew who the parts makers were, we were forbidden to deal directly with them, a condition set by GM. So we had no choice but to deal with GM-ODC and that meant we could not get a lower price for the parts,” recalled a former manager at Europel, which sold Opel and Holden models in the 1990s.

Parts prices will also be reduced for old models like the Spark (above) and Nabira (below)

Hicom-Chevrolet (HCSB), being majority owned by GM, is part of the GM ‘family’ so things are different for HCSB and it can get parts at a lower price because it does not have to deal with GM-ODC, the ‘middleman’ which adds its own profit.

This was confirmed by Ms Wisadkosin who said: “We now have direct and shared access to GM’s suppliers in Europe, Thailand and Korea and the GM parts network globally so we can get the parts cheaper. This in turn means savings for our customers, lowering their total cost of ownership.” 

Total cost of ownership (TCO) refers to the amount spent on maintaining the vehicle, repairs, insurance and fuel, besides the original cost of buying the vehicle. It is something which buyers should look into more closely rather than just focus on the price of the vehicle alone. A car that is cheap to buy may not necessarily be cheap to own in the long run as parts prices may be high or its fuel consumption might not be good. In the cases of Chevrolet, the total cost of ownership uses the scheduled maintenance as a basis over 100,000 kms. As an example, the Optra 1.8 is claimed to have a TCO 79% lower than a popular 1.8-litre rival.

Ms Wisadkosin went on to add that the reduction in parts prices brings some 88% of line items to comparable levels as competitors and, in some cases, even lower than the parts prices of competitors, model for model. While the reductions for part of certain models are quite impressive, the reduction for Captiva parts is less significant and this is because the model was introduced by HCSB and even from launch time, the parts prices were already low. However, with a bit of tweaking, HCSB has been able to lower the prices by another 5% on average.

The reductions are for parts for the Aveo, Optra, Captiva as well as the older models such as the Lumina, Spark and Nabira which were sold by Hicomobil. There are 14,000 – 15,000 Chevrolets on Malaysian roads today. In making the parts cheaper, HCSB expects that there will be a positive effect on the value of Chevrolet vehicles in Malaysia and improve resale value as well.

During August, there will be a Customer Appreciation Program which offers special discounts on parts as well as a free 36-point inspection

During the month of August 2008, Chevrolet dealers will also be having a Customer Appreciation Program (CAP) where every Chevrolet owner is entitled to a free 36-point check and diagnostic session for his or her vehicle. Parts that need to be replaced will be offered with a further 25% discount (based on the new and lower prices). These apply to the air filter, oil filter, air-conditioning filter, fuel filter and sparkplugs for the Aveo, Nabira, Captiva and Optra. For other parts, there is also a 15% discount offered. So it would be a very good time to send a Chevrolet in, especially for those who will be doing the balik kampong journey during Hari Raya.

Additionally, HCSB will be organizing free technical, briefings where experts will be on hand to give owners car-care tips and other useful advice. These briefings will take place on different weekends at each Chevrolet dealer, of which there are five at present (a sixth one will open next month in Bangi, Selangor). Details of the briefing dates can be obtained from Chevrolet dealerships.

“Through this program, we hope to bring back ‘lost’ customers to our new 3S dealerships,” said Ms Wisadkosin.

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Now that it’s going to be cheaper to maintain a Chevrolet, are you looking for a secondhand one? Check the MTM Database for listings, updated weekly