Chrysler and Ningz Pacific setting up joint venture<\/p>\n
By Russell Williamson<\/p>\n
CHRYSLER is close to finalizing its joint venture arrangements
\nwith its Indonesian partner, which will allow the giant U.S.
\nmanufacturer to focus more attention on the local market.<\/p>\n
Chrysler's Indonesia manager, Michael Buchanan, said the
\npartnership with local firm, PT Ningz Pacific, should be
\nformalized by about the third quarter of this year.<\/p>\n
He said this will allow the company to have a greater
\ninfluence on the way its products were sold here and enable it to
\nslowly increase its market share.<\/p>\n
\"We will have some influence on how the product is marketed
\nand what we bring in and advertising and those kinds of things,\"
\nBuchanan said.<\/p>\n
\"We think the Indonesian market is going to be a pretty
\nsubstantial market in years to come and we would like to get a
\nfoothold here and start introducing some of our product,\" he
\nsaid.<\/p>\n
Chrysler currently sells the Jeep Wrangler and Jeep Cherokee,
\nalthough the slow-selling Wrangler is about to be discontinued.<\/p>\n
It will not be replaced with the new model -- which was
\nlaunched in the U.S. last year -- because it is not available in
\ncompletely knocked down kits.<\/p>\n
\"There are some Wranglers left that we will finish production
\non within the next two or three months and from that point on it
\nwill be just the Cherokee,\" Buchanan said.<\/p>\n
Despite the loss of the Wrangler, Buchanan said Chrysler hoped
\nto sell about 1,500 cars this year -- up from 1,000 last year.<\/p>\n
To help achieve this target, the Rp 115 million upmarket four-
\nwheel drive Cherokee will receive a facelift about July.<\/p>\n
Although the 4000cc straight-six engine and other mechanical
\nunderpinnings remain largely unchanged, the car gets a new, more-
\nrounded exterior and a whole new interior offering improved
\nergonomics.<\/p>\n
Buchanan said he believed 1,500 sales with just the one model
\nwas achievable as volumes last year were hampered by lack of
\nsupply.<\/p>\n
\"At present, we have limited production capabilities because
\nwe are moving our manufacturing into a different plant,\" he said.<\/p>\n
\"We haven't been able to produce since October last year so we
\nreally won't have inventory to sell coming off the production
\nline till April, so it has really put a crimp in the volume that
\nwe could do.\"<\/p>\n
Next year, Buchanan expects volumes to increase even more
\nsubstantially as the company adds a second model to the lineup in
\nthe form of the upmarket people mover, Voyager.<\/p>\n
The 3300cc V6-powered Voyager will be offered with a high
\ndegree of equipment and comfort levels and is expected to be
\npriced to compete with Nissan's Serena at about Rp 100 million.<\/p>\n
Power to the front wheels will be via a four-speed automatic
\ntransmission.<\/p>\n
Inside, passengers are well catered for with accommodation for
\nseven and features which could include air conditioning, leather
\nupholstery, all things electric and dual air bags.<\/p>\n
Although timing for the launch has yet to be determined,
\nBuchanan said he hoped to get the Voyager on sale by the first
\nquarter of next year. He said this could enable the company to
\nadd a further 1,500 sales to its 1998 tally.<\/p>\n
\"If we can launch at the beginning of the first quarter and do
\nsome promotions with it, it is such a popular product that we
\ncould get 1,500 sales out of it,\" he said.<\/p>\n
\"Every country it has been launched in, it has been very
\nsuccessful and I see no reason why it wouldn't be that way here.\"<\/p>\n
Although Chrysler has stated its firm commitment to the
\nIndonesian market, it could still be some time before the company
\nsells sedans here.<\/p>\n
Michael said there was still no real market for the company's
\nmidsized sedans in Indonesia yet and the smaller Neon would be
\ntoo expensive to be able to compete.<\/p>\n
\"Those cars are really a middle-class oriented car and I think
\nit will be a couple of years before the middle-class in Indonesia
\nis stepping up to buy that kind of car,\" Buchanan said.<\/p>\n
\"We are going to be a small niche market player for now and
\nsee how the market develops.\"<\/p>",
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