Multi-franchise motor group Eurokars will open its 430,000 square foot integrated warehousing, servicing and car pre-delivery centre in Tanjong Penjuru in western Singapore next week.
Mr. Kwee, who is Group Executive Chairman, told The Straits Times that the hefty investments were necessary for the company's long-term success.
"It's painful on the pocket," he said. "But we have no choice. The lease on our current facility in Sungei Kadut runs out in two to three years' time."
He added that the Tanjong Penjuru premises will save $300,000 a month in storage charges that Eurokars currently incurs for its Mazda cars at an external warehousing party. The new facility's pre-delivery section can accommodate over 400 cars. It also doubles as a logistics hub for the group's Mazda business in Indonesia.
"There is no bonded facility in Jakarta," Mr. Kwee said, referring to a facility that warehouses dutiable goods. A bonded area allows a car company to store vehicles before duty is paid, keeping running costs down. The Indonesia-born businessman is 70 this year - like Porsche, a brand he has represented since 1985.
The complex houses a repair and maintenance section equipped to handle aluminium bodies and spray painting capable of applying water-based paints
Eurokars also has a stake in a Rolls-Royce dealership in Nanning, China, and owns a Mazda dealership in Perth. "I'm in the business for the long term," Mr. Kwee said. "If you are in for the long term, you can't put every dollar you make in your pocket."
He revealed that he is building a new flagship showroom in Jakarta, and a new facility in Perth - both for Mazda.
The Tanjong Penjuru complex houses a repair and maintenance section that is equipped to handle aluminium bodies and spray painting capable of applying water-based paints. It has high-voltage work bays for electric cars and isolated rooms for lithium-ion battery storage. Its Mazda wing boasts new-car delivery bays.
And the entire facility is lit with LED lighting, with open areas ventilated by high-volume, low-speed ceiling fans, and a sprawling rooftop where Eurokars assembled 70 Porsche cars to mark the German marque's 70th year in June.
Eurokars has an annual turnover in excess of $500 million. Besides being an astute businessman and a hands-on boss, Mr. Kwee finds time to indulge in his own collection of cars and motorcycles. He also supports charitable causes, and is a leading private donor to The Straits Times School Pocket Money Fund.
