GM Indonesia to start new plant in 2009 despite U.S. problems
Thursday, November 27, 2008
The Jakarta Post , Jakarta | Thu, 11/27/2008 11:00 AM | Business
Despite the problems back home in the United States, PT General Motor Indonesia is showing its commitment to Indonesia by laying out big plans for next year -- three new models will be released, new outlets will open and construction will start on a new plant.
While the leaders of the GM parent company are making major efforts to mobilize a bailout from the U.S. government, GM Indonesia is optimistic about its future here, managing director Mukiat Sutikno said on Wednesday.
"We're here to stay. We have no plan to withdraw investments from the country.
"We are even going to release three new models in Indonesia next year, one of which will be released no later than the first quarter of 2009," he said.
A new plant will start to be constructed next year, he said, although no exact timing was given.
At present, GM cars entering Indonesia are completely built up from plants in Thailand and Korea. As of the end of October, GM Indonesia has sold 248 Aveos, 425 Kalos, 70 Optra Magnums, 90 GM Estates and 1,469 Captivas.
Prospects in Indonesia remain very positive, he said, adding that the company had recently opened new distribution outlets in Cirebon in West Java, Jambi in Sumatra, Pontianak in Kalimantan, and Sorong in Papua.
Sales in Indonesia in the first ten months of the year stood at 2,303 units, a significant increase from the total 2007 sales of 1,400 units.
"We hope we will have sold 2,800 units by December," Mukiat said.
Still, next year's sales will likely drop by 30 percent, in line with a decline in the whole automotive industry, he said.
"Eighty percent of Indonesian customers' financing comes from credit loans and the down payments will rise to an average 40 percent of the price. This surely will slow down car purchases."
GM considers Indonesia to be one of its 11 emerging markets, along with Brazil, China, India, Malaysia, Mexico, Poland, Russia, South Africa, Thailand and Turkey.
"This means Indonesia will be one of the company's main production bases," he said.
GM Indonesia is 100 percent owned by GM Corporation. (iwp)
Despite the problems back home in the United States, PT General Motor Indonesia is showing its commitment to Indonesia by laying out big plans for next year -- three new models will be released, new outlets will open and construction will start on a new plant.
While the leaders of the GM parent company are making major efforts to mobilize a bailout from the U.S. government, GM Indonesia is optimistic about its future here, managing director Mukiat Sutikno said on Wednesday.
"We're here to stay. We have no plan to withdraw investments from the country.
"We are even going to release three new models in Indonesia next year, one of which will be released no later than the first quarter of 2009," he said.
A new plant will start to be constructed next year, he said, although no exact timing was given.
At present, GM cars entering Indonesia are completely built up from plants in Thailand and Korea. As of the end of October, GM Indonesia has sold 248 Aveos, 425 Kalos, 70 Optra Magnums, 90 GM Estates and 1,469 Captivas.
Prospects in Indonesia remain very positive, he said, adding that the company had recently opened new distribution outlets in Cirebon in West Java, Jambi in Sumatra, Pontianak in Kalimantan, and Sorong in Papua.
Sales in Indonesia in the first ten months of the year stood at 2,303 units, a significant increase from the total 2007 sales of 1,400 units.
"We hope we will have sold 2,800 units by December," Mukiat said.
Still, next year's sales will likely drop by 30 percent, in line with a decline in the whole automotive industry, he said.
"Eighty percent of Indonesian customers' financing comes from credit loans and the down payments will rise to an average 40 percent of the price. This surely will slow down car purchases."
GM considers Indonesia to be one of its 11 emerging markets, along with Brazil, China, India, Malaysia, Mexico, Poland, Russia, South Africa, Thailand and Turkey.
"This means Indonesia will be one of the company's main production bases," he said.
GM Indonesia is 100 percent owned by GM Corporation. (iwp)
Source : www.thejakartapost.com
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