Australian technology could drive national car
Australian technology could drive national car
By Alexander Corne and Mitchell Mackey
Indonesia's national car could be based around Australian design and technology rather than British know-how.
Unconfirmed reports from the United Kingdom suggest Rover, which is owned by BMW, has decided against offering technology transfers to Indonesia, which may have included an as yet unseen V6 engine.
The 2.5-liter V6 Rover engine which is said to use state-of- the-art, bolt-through construction, would have been used in the car, thought likely to have been based on a heavily modified and revised Rover 400 sedan or five-door hatchback.
However, Rover now seems to have decided against direct involvement with the Indonesian car program and its executives are said to have returned to the UK recently without signing an agreement.
As a result, bidding from Australian-based companies for the design and engineering work far more bespoke Indonesian design is expected.
The development of a national car, similar to Malaysia's Proton, is Indonesian Government policy. However, the project is widely regarded within the industry as impractical because of the huge costs involved and the fiercely competitive nature of the international car industry, which would make life very difficult for any newcomer.
Speaking with Automotive Business & Motoring News last month, the chairman of the Indonesian Automotive Federation, Herman Z. Latif, said the focus should instead be on the development of an integrated network of automotive component companies.
"We need to be idealistic in our thinking, but we also must be realistic," Herman said.
"What is the necessity now to insist on our national car and at what cost?"
Herman said there could be good opportunities for companies to work with the world's carmakers in Indonesia and internationally as suppliers of components.
Industry analysts say substantial, direct government investment in the national car is unlikely and the necessary finance would have to come from the private sector and include an alliance with an established international carmaker.
The Indonesian company Megatech, which owns Italian super carmaker Lamborghini, is reportedly one of several companies examining the feasibility of an Indonesian car. Korean car manufacturer Kia is also involved in negotiations with potential partners.
It is understood that the government project is being led by the Ministry of Science and Technology, under B. J. Habibie.
Habibie's preference for advanced technology could mean that the Australian companies who are offering state-of-the-art design and engineering may have an advantage.
Contracts are said to be on their way to several Australian companies for the production of computer-generated designs as well as clay and metal mock-ups.
Engineering firms in Melbourne remain tight-lipped about the project, but industry sources there suggest that The Millard Design Group is close to signing an agreement with the Indonesian government.
The Millard group is currently working on The Australian Concept Car project, which has been conceived to demonstrate the capabilities of the Australian component, design and engineering companies.
This concept vehicle could indicate the direction Indonesia's national car program may take.
The Australian concept is presently only in rough sketch stage, but it is expected to be shown at key international motor shows in 1997, having been engineered by the Millard group in Melbourne.
One of the car's key components is the Australian-designed Orbital two-stroke 1.2-liter three cylinder engine, though the company also produces an in-line six of 2.0-liters capacity, which could also be used.
Orbital's engine plant in the U.S. is easily transportable and could find its way into any country wanting to use its advanced two-stroke technology and benefit from local production.
Like the other concept car partners, Orbital's aim with the car is to expose automakers and nascent car industries around the world to the benefits of its technology, in this case its frugal and clean-running engines.
The Australian project involves a consortium of 80 component suppliers who are expected to invest a total of $21 million between them in terms of research development and project support. The Australian government has offered its moral support through Austrade, its official export promotions arm.
Closely associated with Millard's design studio is the American automotive component manufacturer Venture Plastics, and the engineering toolmaker Tool and Die.
This triumvirate has the capability to offer an Asian-based development facility said to rival any such departments in Detroit, Frankfurt or Tokyo.
Sources in Australia who suggest that the Indonesian car project has become active, point to the arrival of a group of Indonesian technicians who are said to have moved to Melbourne to work full time.
An executive from Millard Design Group refused to confirm or deny the company was involved in the Indonesian project, but conceded that they were active in Asia for business and that several countries are eager to produce their own cars, rather than assemble cars designed initially for Western markets.
A source close to Millard Design suggested that if the company were to undertake work for Indonesia, it would be carried out in Melbourne in the initial stages before being transferred to Jakarta.