AMW to downsize operations in Sri Lanka

13 November 2022 08:47 am Views - {{hitsCtrl.values.hits}} 20 Bookmark

CHATURANGA PRADEEP SAMARAWICKRAMA Follow

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AMW, a wholly-owned company of Al-Futtaim based in UAE, which provides some of the world’s most-recognized automotive brands, services, and mobility solutions to customers, said it has begun the process of closing down identified locations across Sri Lanka.

“The restructuring of AMW is in direct response to Sri Lanka’s current economic situation and the challenges that high inflation, vehicle import bans and high interest rates place on the automotive sector,” a statement said.

Over the coming weeks, the company will select which locations to close, with the closures taking place over the next few months. It will maintain its owned facilities and businesses across the country including its brand partnerships with Nissan, Suzuki, Yamaha, Renault and New Holland.

The statement further said AMW employees have been informed of the resizing by management and AMW has committed to offering the highest level of support to all employees during these challenging times.

In recognition of their valued contribution, the company will be offering assistance for re-employment, well-being and financial support.

Comments - 20

nevilcmb Saturday, 12 November 2022 01:07 PM

This is another result of the pro Rajapak regime. Who will lookafter the employees who lost their jobs.? Ranil is the saver of Rajapak regime and the gung.!

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Sunil Saturday, 12 November 2022 01:09 PM

This is the negative side of Foreign Investment. They come and take the milk and honey and dessart us when they can't get it. If they have good corporate values, they could have stretched for one more year and then with economic recovery stayed on. If the founder Sir Cyril Dr Soyza hears about it, he will weep in his grave for selling it to Al Futtaim.

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jaya Saturday, 12 November 2022 02:10 PM

So.... How does a company that focuses on importing vehicles survive when imports are cut off for nearly 3 years? What do you think a local owned company can do otherwise?

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Fathima Lai Sunday, 13 November 2022 04:21 PM

Sunil: It is not a state sector to continue running despite losses to burden everybody.

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Be Fair Saturday, 12 November 2022 01:20 PM

Wonder if this would have been the case if it was Sri Lankan owned? Lot of people will loose their jobs. The Govt needs to have a Policy for Vehicles. seriously look at Recon, unauthorized imports

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Be Fair Saturday, 12 November 2022 01:20 PM

Wonder if this would have been the case if it was Sri Lankan owned? Lot of people will loose their jobs. The Govt needs to have a Policy for Vehicles. seriously look at Recon, unauthorized imports

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Sunil Saturday, 12 November 2022 03:06 PM

Reply to Jaya - Al Futtaim is probably the largest UAE company diversified into many sectors, it is in billions of dollars and in many countries. When there is so much of difficulty in Sri Lanka, they can easily wait for at least 1 year for the sake of the people. Humanity is more important and these blue collar workers earn a penny. When people lose jobs, families and communities get affected. Is this responsible corporate governance? Just issuing corporate communications in spicy language does not help. If it was a small vehicle importer then I will not say this.

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Sunil Saturday, 12 November 2022 03:17 PM

Another reply to Jaya - They have billions of dollars and could have imported without going through Sri Lankan forex and banking channels. Finally, when our crisis is over they could have converted all the rupees earned to dollars and remitted to UAE. Al Futtaim Treasury could have provided bridging finance to tide over the difficult times. It requires out of box thinking and being human.

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Sam Saturday, 12 November 2022 04:30 PM

This is what needs to be done to run a profitable business. Take note government and do the same with the terrible state run enterprises, and quickly, rather than keeping them afloat with our tax money.

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Nuwan W Sunday, 13 November 2022 08:32 AM

Another massive accomplishment of ingenious president #Ranilwicramasinghe. We thought that not only he can save the country, but also revive the economic calamity, after-all for some small brains he is known for earning world respect and affluence. Well ... well what happened to the titles ?. Ability to speak 2 words of English isn't going to give you the knowledge, expertise and the strategy, international bodies will only be impressed with the individual character, not listening garbage. In short if you hold a SL passport you're known as a crook and a plunderer, especially when you are employed at the parliament !!

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Sad citizen Sunday, 13 November 2022 01:26 PM

Truly sad! AMW is one of the oldest companies.. how many more will close down like this? Decathlon, one of the largest sports goods outlets withdrew last month.

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Kikazaru Sunday, 13 November 2022 02:13 PM

Why not venture into a bullock cart project?

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Bernard Jayatilake Sunday, 13 November 2022 04:35 PM

This is going to have cascading effect on all foreign companies operating in this country due to the infamous import ban imposed by the half military baked maniac.

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Allen Selwyn Sunday, 13 November 2022 04:54 PM

Sri Lanka is a story of self inflicted damage. Once race and religion was prioritised the looters used that as the stepping stone to grab the leadership. Job losses will accelerate and starvation will increase. Will race provide a job? Will religion provide a job? The majority will suffer the same pain that they dished out to the minorities. Suffer the self inflicted pain.

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Travis Sunday, 13 November 2022 05:13 PM

With out a shame kabral rajapaksala ask for votes. Dont vote for these fellows who destroy our mother land

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Customer Sunday, 13 November 2022 05:36 PM

Anyway it's better to close down.Very bad customer service and most staffs rude and unprofessional. Specially Yamaha Union place and Mount lavinia service stations.U can see a better response if you conduct a customer survey.

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Sam Sen Sunday, 13 November 2022 07:41 PM

@Sunil: Alfuttaim is a great company where I worked for 10 years. No business can be expected to loose money for indefinite period. Could any economist in Sri Lanka say when the country will become prosperous??? As long as these corrupt leaders are there, things will become worse and worse only. Rajapakses are still in control of everything. They will be only focusing on Covering and hiding all their past sins and eliminating anyone and everyone who try to go against them. The security forces are still under Rajapakses control. Country’s president is in Namal’s Control. Sunil, my bro, Alfuttaim is not just run by bunch of idiots!!!

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Martin Milton Sunday, 13 November 2022 08:06 PM

The fault lies with original owners of AMW who sold it to this foreign company initially, despite one or two Sri Lankans offering to purchase it. Greed for money is so very sad. How uncaring and antinational of the previous owners! Now so many are losing jobs. Best is for a Sri Lankan to buy this valuable asset back. Wealthy people in Sri Lanka ...."Are you listening" ?? MM

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Piyal Sunday, 13 November 2022 09:57 PM

AMW customer service is worst than government service!

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Dilshan Perera Monday, 14 November 2022 12:07 AM

Good. These vehicle importers are the only reason we have no local automobile industry, thanks to their commissions, bribes and cheap imports, destroying local manufacturers. Hope to see this happen to many more purely auto importers. We know they are starving, only a matter of time!

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