Nissan sees drop in RI car demand<\/p>\n
TOKYO (Reuters): Japanese car giant Nissan Motor Co Ltd said
\nyesterday it expects total vehicle demand in Indonesia to fall
\nabout 70 percent in January compared with the same month last
\nyear.<\/p>\n
\"Overall (vehicle) demand in Indonesia is sliding about 70
\npercent,\" Yoshi Iwashita, general manager in charge of Nissan's
\nAsia and Oceania Operations Division, told Reuters in an
\ninterview.<\/p>\n
He said the fall in demand, resulting from the economic and
\ncurrency crisis in Indonesia, may not cause a major cutback in
\nNissan's output in Indonesia, as this remained relatively small
\ncompared with that of other major carmakers, such as Toyota Motor
\nCorp.<\/p>\n
Iwashita said Nissan's annual vehicle production in Indonesia
\nstood at around 5,000 units.<\/p>\n
On Monday, a Nissan spokesman warned that the firm's
\nIndonesian unit, which produces vehicles using kits imported from
\nJapan, could halt production if the worst came to the worst.<\/p>\n
\"We will have to decide what to do at the Indonesian unit
\nbecause of Indonesian economic conditions. We must consider it
\n(the Indonesian output) urgently,\" the spokesman said.<\/p>\n
Indonesia's currency has weakened by about 80 percent against
\nthe dollar in the past six months.<\/p>\n
Asked whether the economic woes would cause any delay in
\noperations of the Nissan's new engine production joint venture in
\nIndonesia, Iwashita said: \"We are taking a wait-and-see
\nstance...I cannot tell you anything clearly now.\"<\/p>\n
He said uncertainty remained as to the political situations in
\nboth countries, making it difficult for Nissan to make any
\nconcrete decision right now.<\/p>\n
In December, Nissan said it would set up an engine production
\njoint venture in January, in which it would takes a 51 percent
\nstake. It said the Jakarta-based Indomobil Group would take a 30
\npercent stake, while the rest would be owned by a subsidiary of
\nMalaysian automaker Tan Chong Motor Holdings Bhd.<\/p>\n
The venture is due to start building a plant in early 1998.<\/p>\n
Iwashita said that although it was widely expected that it
\nwould take about three years before a recovery was seen in the
\neconomies in Indonesia and Thailand, everything was still up in
\nthe air concerning the future economic climate.<\/p>",
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