Negative media reports affect Timor car sales<\/p>\n
JAKARTA (JP): Negative media reports and a fear of poor after-
\nsales services have affected sales of the country's controversial
\nnational car, according to its distributor.<\/p>\n
Richard Hendarmo, the operational director of PT Timor
\nDistributor Nasional said yesterday that the company sold only
\n5,800 Timor cars from the beginning of October to now, far below
\nits initial target of between 3,000 and 4,000 a month.<\/p>\n
The local media reports, which thus far highlighted only the
\n\"bad\" side of the car, and the rumors that the sales were not
\nsupported with an adequate supply of spare parts, have made \"some
\nprospective buyers postpone their purchase\", he said.<\/p>\n
Although he acknowledged that the media reports had affected
\nsales, Richard strongly denied the rumors that the cars were not
\nselling.<\/p>\n
The company has imported 14,000 cars, about 6,000 of which are
\nstill parked at Soekarno-Hatta International Airport.<\/p>\n
The 6,000 Timor cars parked at the airport was not an
\nindication of weak sales, he said.<\/p>\n
\"We are keeping them as a buffer stock to anticipate a rush in
\ndemand,\" he said after the ceremony to mark the opening of the
\nTimor car showroom at the Antara building.<\/p>\n
He denied rumors that many Timor cars had been donated to
\nforeign ambassadors and sold to government offices owing to the
\ndifficulties in sales.<\/p>\n
Two cars have been donated to the Palestinian ambassador in
\nJakarta owing to the company's good relationship with him, and 15
\ncars have been bought by the East Java administration, 10 cars by
\nthe Jakarta military command, 13 by the National Land Agency, and
\neight by the National Logistics Agency, Richard said.<\/p>\n
Richard, who refused to answer the questions of foreign
\njournalists in English on account of his national pride, asked
\nthe press to be fair by also reporting the fact that the Timor
\ncar project had brought benefits to the public.<\/p>\n
\"For instance, after the Timor car was launched, car producers
\nin the country vied to cut the prices of their products.
\nPreviously, the price of a car could exceed that of a luxury
\nhouse,\" he said.<\/p>\n
Protests<\/p>\n
Timor cars, which are produced by PT Timor Putra Nasional,
\nowned by President Soeharto's youngest son Hutomo Mandala Putra
\ntogether with South Korea's Kia Motor, has incited protests from
\nJapan, the United States and the European Union.<\/p>\n
The government has given Timor Putra a license to develop the
\nso-called national car. It is allowed to import cars from its
\npartner Kia Motor without paying sales tax and import duties
\nuntil it finishes the construction of its factory in 1998.<\/p>\n
The tax incentives enable the company to sell its products at
\naround Rp 36 million (around US$15,250) or around half the price
\nof Japanese makes of the same class (with a 1,600cc engine).<\/p>\n
Benny Koernadi, director of PT Timor Industri Komponen, the
\nTimor car component maker, also denied the rumors that Timor car
\nsales were not supported by adequate after-sales service.<\/p>\n
The firm, he said, had enough spare parts in its warehouse in
\nCipinang, East Jakarta, and sufficient spare parts were supplied
\nto all agents each month.<\/p>\n
The firm already has 26 sales agents throughout the country.
\nAll are required to have adequate spare parts, a showroom,
\nworkshop and Timor car technicians. They must also have a second-
\ncar division so that Timor car users could resell their cars
\nanytime, he said.<\/p>\n
Aside from the sales agents, a total of 226 spare part shops
\ncross the country, including 12 shops in Jakarta, sold Timor car
\nspare parts.<\/p>\n
\"There are at least two spare part shops selling Timor car
\nspare parts in all big towns throughout the country, Benny said.\"<\/p>\n
He also said that all the sales agents have opened a round-a-
\nclock service and the company has launched a homepage on the
\nInternet. (jsk)<\/p>",
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