GM won't raise Opel price<\/p>\n
JAKARTA (JP): PT General Motors Buana Indonesia (GMBI)
\nannounced yesterday it would not increase the price of its Opel
\ndespite the price hike of other cars.<\/p>\n
\"We are extremely reluctant to raise prices at present,\" said
\nGMBI's director of sales Terry B. Johnsson yesterday.<\/p>\n
Johnsson attributed the company's ability to cope with the
\nrupiah's recent sharp decline against the U.S. dollar to the high
\nlevel of local content in its vehicles.<\/p>\n
\"However, like all car manufacturers here, we are obviously
\nunder severe pressure to increase prices,\" he said.<\/p>\n
He said the company would \"have to change if the current
\nfinancial climate does not improve\".<\/p>\n
Several car companies, including Toyota manufacturer Astra
\ngroup and PT Timor Putra Nasional, which produces Timor cars,
\nannounced earlier a hike in their car prices to meet rising
\noperational costs as a result of the rupiah's sharp drop against
\nthe U.S. dollar.<\/p>\n
The rupiah has dropped by over 10 percent in the last few
\nweeks following speculative attacks from local and foreign fund
\nmanagers.<\/p>\n
The rupiah recovered again in the last three days, following
\nthe central bank's move to increase its interest rate.<\/p>\n
Johnsson said there would have to be a long-term adjustment in
\nIndonesia's car market to reflect changed financial
\ncircumstances.<\/p>\n
\"To that end we are prepared to absorb some of the costs of
\ndepreciation in the short-term,\" he said.<\/p>\n
Johnsson said prior to the currency crisis, record sales
\nfigures reflected the demand that existed for Opel vehicles.<\/p>\n
GMBI is a joint venture between Garmak Motor and the General
\nMotors Corporation. (das)<\/p>",
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