Distribution agreement changes

Thursday, 28 February, 2008

Standard Communications has announced the mutual cessation of its distribution agreement with Garmin International.

Under a recently concluded agreement, Garmin International will open a direct operation in Australia operating out of Sydney to be known as Garmin Australasia Pty Ltd.

From 1 July, Standard Communications will cease to be responsible for all sales, marketing activity and after-sales service of Garmin products. Garmin Australasia Pty Ltd will have the necessary support infrastructure in place to service and support all warranty and non-warranty Garmin products sold into the Australian market.

Paul Maloy, Standard Communications’ managing director, said: “Understandably, such changes will create some concerns within our markets; accordingly, I would like to take this opportunity to stress that the mutual termination of the Garmin distribution agreement will in no way impact any customers who are currently purchasing GME products. Whilst for many years the GME and Garmin brands were highly complementary, in recent times, particularly with the advent of the PND product line, Garmin has evolved into more of a consumer electronics company. The forthcoming release of a Garmin mobile phone (nuviFone) and a renewed focus on fitness products has further deviated from GME’s traditional distribution channels.”

GME’s management has stressed that Standard Communications and Garmin will be working closely together over the coming months to ensure a seamless transition and minimal disruption for both dealers and end users.

The key benefit of this new arrangement is that it will allow each organisation to independently focus its efforts on its core business and provide enhanced customer service.

The transition for Australia is expected to be completed on 1 July 2008 with New Zealand to be completed by 1 January 2009. Garmin’s aviation structure in Australasia remains unchanged at this time.

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