DaimlerChrysler pledges to keep assembly plant<\/p>\n
JAKARTA (JP): PT DaimlerChrysler Indonesia, the sole agent of
\nMercedes-Benz in the country, pledged here on Thursday to
\nmaintain its local assembly plant despite a trend among high-end
\ncar manufacturers to sell completely built-up (CBU) versions in
\nthe local market.<\/p>\n
Company president Friedel Engisch said here on Thursday most
\nof its Indonesian buyers were satisfied with the locally made
\nMercedes-Benz, and only a few wanted their cars equipped with
\nsome of the exceptional features found in the CBU models.<\/p>\n
\"Basically, we'll continue to optimize the use of our
\nproduction plant here ... The majority of our cars sold here will
\nbe the locally assembled ones,\" he said during a media
\nconference.<\/p>\n
All of the company's locally assembled cars use imported
\ncomponents.<\/p>\n
He said the company's sales of CBU models would decline next
\nyear to about 30 percent of total sales after it starts locally
\nassembling the Mercedes-Benz C-Class models, which are currently
\nimported in CBU form, at its plant in West Java at the end of
\nthis year.<\/p>\n
This year the sale of CBU units is estimated to account for 40
\npercent of the company's predicted total sales of around 2,500
\nvehicles, he said.<\/p>\n
Engisch said the company expected to produce between 800 and
\n1,000 units of the C-Class version next year.<\/p>\n
He said he was not concerned that car producers like General
\nMotors, Range Rover and BMW were focusing more on the sale of
\ntheir CBU models to meet an increase in local demand for the more
\nexpensive and prestigious vehicles.<\/p>\n
General Motors recently launched two CBU models, the Chevrolet
\nBlazer V6 and family wagon Zafira, while BMW said it would import
\nseveral CBU models this year, including the BMW 528iA-T station
\nwagon and the BMW X5 4.4A off-road jeep.<\/p>\n
Local car enthusiasts have recently been able to satisfy their
\ncraving for exclusive foreign-made vehicles thanks to the
\ngovernment's decision to open the country's automotive market to
\nCBU vehicles.<\/p>\n
Many of the CBU cars have been shipped to Indonesia not by
\nauthorized dealers, but by general importing companies, which are
\nallowed to import the vehicles as part of the government's new
\nautomotive policy.<\/p>\n
Indonesia first eased restrictions on the importation of CBU
\ncars in July of last year by cutting import duties of the
\nvehicles to between 65 percent and 80 percent depending on engine
\nsize. The import duties previously were as high as 200 percent.<\/p>\n
However, in February of this year then minister of industry
\nand trade Jusuf Kalla issued a decree banning the importation of
\nCBU cars with an engine capacity greater than 4,000cc or priced
\nover US$40,000, saying the presence of such luxury vehicles would
\ncause social jealousy.<\/p>\n
The government, however, revoked the ban in June in response
\nto protests from major car manufacturers.<\/p>\n
DaimlerChrysler Indonesia, which currently distributes the
\nJeep Cherokee and Chrysler brands in addition to the Mercedes-
\nBenz, said it would display its CBU models along with its locally
\nassembled vehicles at the Gaikindo car expo from Sept. 6 to Sept.
\n12.<\/p>\n
The models to be displayed at the expo include two versions of
\nthe completely built-up C-Class, the Mercedes-Benz A, M, and S
\nClasses, the Jeep Grand Cherokee and Chrysler's family wagon the
\nGrand Voyager.<\/p>\n
The company also will exhibit a prototype of its first
\nMercedes-Benz car, which was produced in 1886. (cst)<\/p>",
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