GMI halts expansion plan due to crisis<\/p>\n
JAKARTA (JP): Automotive producer General Motors Indonesia
\n(GMI) has put on hold some of its local expansion projects due to
\nthe economic crisis.<\/p>\n
GMI's president William S. Botwick said on Monday that the
\ncompany initially planned to introduce new models of four-wheel
\ndrive vehicles in the country, but it had to cancel the plan.<\/p>\n
\"For the time being we will focus on our Opel Blazer model in
\nIndonesia, while maintaining Opel's position as the leading sport
\nutility vehicle in Indonesia,\" he said at a media conference.<\/p>\n
Botwick said the company also had planned to export its
\nvehicles to other Southeast Asian countries, but the plan was put
\non hold as those countries impose high import duties on cars
\nduring the regional economic crisis.<\/p>\n
He said the economic crisis had also forced the company to
\nslash its production capacity by more than a half.<\/p>\n
\"But we are still producing while many of our competitors are
\npulling out from Indonesia,\" he said.<\/p>\n
He did not disclose the amount of the company's sales last
\nyear, but said the company sold more than 100 Opel Blazers this
\nmonth.<\/p>\n
Botwick said the company would continue its business in
\nIndonesia, despite the deepening crisis, especially after it
\ncontrolled the whole stake of GMI, formerly known as General
\nMotor Buana Indonesia (GMBI).<\/p>\n
The company, which was previously partly owned by local firm
\nGarmak Motor, began producing automobiles in September 1994 with
\nthe Opel Vectra, followed by Open Optima sedans and Opel Blazer.<\/p>\n
GMI announced on Monday a program to replace the timing belt
\nsystems on all locally manufactured DOHC and LT versions of Opel
\nBlazers.<\/p>\n
Owners of DOHC and LT Blazers are asked to contact their local
\ndealers as soon as possible to schedule a free system upgrade on
\ntheir cars' timing belts.<\/p>\n
Botwick said the timing belt system upgrade was being
\nperformed because a GMI investigation revealed that there was a
\npotential that the system could fail.<\/p>\n
\"Although the safety of the vehicle and its occupants are not
\nan issue, we want all of our DOHC and LT Blazer owners to feel
\nsecure with their vehicle. We want them to know that GM Indonesia
\nis committed in providing the very best product possible,\" he
\nsaid.<\/p>\n
Botwick said the program covered all Opel DOHC and LT Blazers,
\neven those in which the initial warranty period had expired and
\nthose which had seen an ownership change.<\/p>\n
\"Consumers do not have to pay anything for the upgrading.
\nHowever, it is not an inexpensive program for us, as we have to
\nspend over $1 million for it,\" he said.<\/p>\n
He said the program would enable the company to boost sales,
\nwhich had dropped significantly.<\/p>\n
The program will be initiated in stages. System upgrades began
\non March 29 in Jakarta and West Java. The program will get under
\nway in Central Java, East Java, Sulawesi, Sumatra and Kalimantan
\nbeginning April 5.<\/p>\n
Botwick said that in order to encourage customers to take
\ntheir vehicles to dealers, the company would provide a
\ncomplimentary oil change. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/gmi-halts-expansion-plan-due-to-crisis-1447893297",
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