LEESBURG, VA — Precision Auto Care, Inc. (PACI) on Tuesday signed a master franchise agreement with Hung Yue Holdings (Hong Kong) Co., Ltd. giving that firm’s affiliate, Precision Tune Auto Care (China) Co. Ltd., a license to open and operate at least 330 Precision Tune Auto Care (PTAC) car care centers in China over the next seven years. The first PTAC center is scheduled to open early next year.
Paul Ng, president and CEO of Hung Yue Holdings Co., Ltd, and Peter Zhu, COO of Hung Yue, signed the deal with PACI at PTAC’s headquarters in Leesburg, Va.
Lou Brown, CEO of PACI, said the agreement was the first major licensing deal an American auto service and repair franchise had reached in China. “The Chinese economy is expanding rapidly, and the transportation infrastructure needs to keep pace with the economic growth,” said Brown.
“China is the fastest growing market in the world, yet they have no auto aftermarket providers except small independents and dealerships,” said Robert Falconi, president and COO of PACI. Market research from last year demonstrates that the production of motor vehicles in China was up by 38.8 percent, with the production of the car category rising an astounding 55.2 percent. These vehicles require sophisticated diagnostic equipment and trained technicians to maintain and repair them. “The investment in equipment for this type of technology is financially out of reach for most independent repair shops in China,” said Falconi, presenting a great opportunity for PTAC to aggressively market to customers who want affordable and convenient car care and repairs.
Hung Yue Holdings said it chose PTAC over other American auto car care franchises based in part on their international experience, especially their success in franchising more than 55 repair centers in Taiwan through the master franchisee for that entity.
Hung Yue Holdings Co., Ltd. serves Hong Kong as well as mainland China. The company’s subsidiaries and sister companies are involved in a multitude of industries ranging from petrol engine manufacturing to real estate, imports and exports, construction, investments and other economic sectors.
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