Jardine Cycle & Carriage

Jardine Cycle & Carriage
Formerly
 Cycle & Carriage
Traded as SGX: C07
STI Constituent
Industry Conglomerate
Predecessor Cycle & Carriage
Headquarters Singapore
Revenue Increase SG$25.19B (2017)
Increase SG$0.80B[1] (2017)
Total assets Increase SG$25.46B[2] (2017)
Number of employees
 250,000[3] (2017)
Parent Jardine Matheson
Subsidiaries

Jardine Cycle and Carriage Limited (SGX: C07) is a Singaporean diversified conglomerate. Valued at SG$12.7b, it is Singapore's 16th largest publicly listed company by market capitalisation.[4] It was renamed from Cycle and Carriage following its integration into the Jardine Matheson Group in 2004. It has been described by Lim Kim San as "a household name ... which has built for itself a reputation for excellence".[5]

Its marques include Mercedes-Benz, Kia, Mitsubishi and Citroen. Significantly, the group owns a controlling stake in Indonesia's Astra International, a diversified conglomerate with key interests in the automotive sector.

History

Early history as Federal Stores

Jardine Cycle and Carriage was founded by Chua Toh as Federal Stores, a trader in nutmeg and sundries on Jalan Bandar (High Street) in Kuala Lumpur, Malaysia.[6] On 15 June 1899, it was renamed Cycle & Carriage, and thereafter it expanded to sell bicycles, motorcycles, and eventually motor cars. In 1904, Cycle & Carriage shifted to the corner of High Street, Market Street and Market Square. Following a surge in demand for automobiles, particularly buses, trucks and cars, Cycle & Carriage expanded to Ipoh, Penang and Singapore.

World War I and the shift to Singapore

During World War I, Cycle & Carriage suffered economically as a result of the shortage of supply for cars. The war, however, encouraged the development of automobile technology, stimulating interest in the motor car, and spurring demand for Cycle & Carriage's products in 1918. In that year, Cycle & Carriage was registered with SG$250,000 in registered capital. In 1926, Cycle & Carriage shifted its headquarters to Orchard Road in Singapore,[7] with capital of SG$5 million.

World War II and the Daimler-Benz contract

Cycle & Carriage was impacted more strongly in World War II than World War I as a result of Malaya's greater involvement in the war. It ceased operations, and its workshops, motor cars and trucks were absorbed by the Japanese during the Japanese occupation of Malaya and the Japanese occupation of Singapore. After the war, it struggled to regain market share from its larger rivals. In 1951, in order to secure the franchise for Mercedes-Benz in Singapore, and at the advice of a representative from Daimler-Benz, Chua Boon Peng placed an order for six cars, without yet having secured buyers. These were ultimately bought by Chua Boon Peng's father, and taxi companies, who recognised that the reliable diesel engine of the Mercedes-Benz vehicle made it suitable for drivers making long trips from Singapore to Malaya. By 1955, Cycle & Carriage's capital had increased from SG$540,000 to SG$10 million, and by 1964, to SG$20 million.

Expansion and listing

Cycle & Carriage launched plans to build an assembly plant in Hillview, Singapore. On 4 March 1965, the Minister for Finance (Singapore) Goh Keng Swee laid the foundation stone for the SG$2.5 million plant, and predicted that it would create 10,000 new jobs over the following five years. In 1969, the company launched an initial public offering, which was oversubscribed by 73 times, with a total offering of SG$241.65 million.

Acquisition by Jardine Matheson

By 1999, Jardine Matheson was a major shareholder in Cycle & Carriage, with a 24.6% stake.[8] In 2002, Cycle & Carriage became a subsidiary of Jardine Matheson when Jardine Strategic increased its stake to over 50%. In recognition of its distinguished operating history, and in the interests of integration to the Jardine Matheson Group, it was renamed Jardine Cycle & Carriage.

References

  1. ↑ "Equities - Jardine Cycle & Carriage Ltd". Financial Times. 5 September 2018. Archived from the original on 5 September 2018. Retrieved 5 September 2018.
  2. ↑ "Equities - Jardine Cycle & Carriage Ltd". Financial Times. 5 September 2018. Archived from the original on 5 September 2018. Retrieved 5 September 2018.
  3. ↑ "Equities - Jardine Cycle & Carriage Ltd". Financial Times. 5 September 2018. Archived from the original on 5 September 2018. Retrieved 5 September 2018.
  4. ↑ "Market Capitalisation". Business Times. Archived from the original on 5 September 2018. Retrieved 5 September 2018.
  5. ↑ Leong, Ching; Lim, Richard (1999). 1899, the Cycle & Carriage Century. Singapore: Cycle & Carriage Ltd. p. 9. ISBN 9810413963.
  6. ↑ Leong, Ching; Lim, Richard (1999). 1899, the Cycle & Carriage Century. Singapore: Cycle & Carriage Ltd. p. 22. ISBN 9810413963.
  7. ↑ Leong, Ching; Lim, Richard (1999). 1899, the Cycle & Carriage Century. Singapore: Cycle & Carriage Ltd. p. 10. ISBN 9810413963.
  8. ↑ Leong, Ching; Lim, Richard (1999). 1899, the Cycle & Carriage Century. Singapore: Cycle & Carriage Ltd. p. 57. ISBN 9810413963.


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