General Motors set to export 1000 jeeps<\/p>\n
JAKARTA (JP): PT General Motors Buana Indonesia is targeting
\nto export 1,000 Opel Blazer jeeps next year to a number of
\ncountries in Africa and the Asia-Pacific region, the company's
\npresident, William S. Botwick, said yesterday.<\/p>\n
\"This year, key export destinations are likely to include
\nSouth Africa, Kenya, Namibia and Malaysia. The first export
\nshipment is scheduled for October. But there is no target this
\nyear.\" he told the press at a ceremony to commemorate the
\ncompany's third anniversary.<\/p>\n
Botwick said the company will also export automotive
\ncomponents to those countries.<\/p>\n
General Motors Buana, formerly called PT Garmak Motor, is 40
\npercent owned by Probosutedjo, the chairman of the Mercu Buana
\nGroup, and 60 percent by General Motors of the United States.<\/p>\n
The joint venture firm was established in September 1993 to
\nproduce Opel Blazer jeeps outside of General Motors' production
\nbase in Detroit, the United States.<\/p>\n
Botwick said General Motors Buana, with a total investment of
\nUS$110 million, currently has a production capacity of 600 units
\nper month. \"Next year, we'll expand the capacity to 800 units per
\nmonth,\" he said.<\/p>\n
According to Botwick, General Motors Buana targets to sell
\n5,500 Opel Blazer jeeps domestically this year. Until now, the
\ncompany has managed to sell 2,500 units.<\/p>\n
Meanwhile, Probosutedjo said his company plans to fully
\nmanufacture Blazer jeeps in Indonesia to minimize production
\ncosts.<\/p>\n
Currently, Blazer jeeps are sold at Rp 72 million (US$31,168)
\nper unit, as compared to about Rp 50 million for jeeps of a
\nsimilar type.<\/p>\n
\"When the vehicle is fully manufactured here, we can decrease
\nthe selling price to only Rp 50 million,\" Probosutedjo said,
\nadding that he expects his company to lower the price late next
\nyear.<\/p>\n
He said Blazer currently has 40 percent local content. \"I
\nexpect that in three years, the local content will be 100 percent
\nbecause we already have a good production line here,\" he said.<\/p>\n
At yesterday's ceremony, Probosutedjo asked General Motors to
\nincrease investments in Indonesia, ignoring the government's
\nnational car policy, which provides tax breaks to only one
\ncompany, PT Timor Putra Nasional, for its sedans under the local
\nbrand name of Timor.<\/p>\n
\"I'll go to Detroit to persuade General Motors to expand its
\noperations here. We have a potentially huge market in this
\ncountry. General Motors should take this opportunity. Otherwise,
\nother foreign companies will come,\" said Probosutedjo, who is a
\nhalf-brother of President Soeharto.<\/p>\n
Japan, the United States and Europe have protested against the
\nnational car policy, accusing it of being discriminatory against
\nother car producers.<\/p>\n
\"I've told General Motors not to be hesitant to invest here
\nbecause the future market in this country will be much bigger
\nthan that of Thailand,\" Probosutedjo said.<\/p>\n
General Motors announced recently that it had already invested
\n$750 million in Thailand to produce the Opel sedan. (13)<\/p>",
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