AirAsia chief turns passion to sports cars
Tony Fernandes, founder of the low-cost carrier AirAsia, has said that he has always relied on his "passions" to launch successful businesses. It was his love for aeroplanes that inspired the Malaysian millionaire to build his successful aviation empire,
Last week in Paris, he unveiled a new passion and a new venture – sports cars. In front of an army of reporters, he officially announced that he was getting into a joint venture with French automobile company Renault to design, develop and build sports cars for the mass market.
Under the joint venture, UK-based Caterham Group, of which Fernandes is a major shareholder, will hold a 50 per cent stake in Automobiles Alpine Renault. The venture will be renamed Societe des Automobiles Alpine Caterham and become an official entity in January. It is expected to start rolling out cars by 2015 under the new brand.
Though Fernandes declined to reveal the price of these cars and the production numbers, he said they would be available worldwide, especially in Asia where his airline has the strongest foundation. He went on to say that Asia, especially Southeast Asia, would be key markets thanks largely to rising prosperity, which is driving the demand for cars.
Venturing into the business of producing cars is not very different from his core businesses, Fernandes said. Sports cars focus on “lifestyle”, much like his Kuala Lumpur-based Tune Group, which focuses on entertainment and leisure. The group oversees Tune Hotels, AirAsia, Tune Money and Tune Tone among others.
“We know the markets we are going into and, particularly in my background in Asia, there is a huge opportunity to replicate the AirAsia model and give consumers access to exciting, affordable products that marry our interests in F1 and technology and help make their dreams come true,’’ he said.
Fernandes insisted that this was the right time to launch a car with Renault even though the global business climate is uncertain. He said that if it is the right product placed at the right place, it is bound to be successful. Most importantly, he said, he has understood “Asian lifestyle’’.
The new sports vehicles will be distinctive and will carry the DNA of Alpine Renault and Caterham Cars, the automotive division of Caterham Group. They will be built at the Alpine plant in Normandy, France, though some parts might be produced in Asia to keep costs low and make the most of the regional tax incentive.
