Chrysler and Ningz Pacific setting up joint venture
Chrysler and Ningz Pacific setting up joint venture
By Russell Williamson
CHRYSLER is close to finalizing its joint venture arrangements
with its Indonesian partner, which will allow the giant U.S.
manufacturer to focus more attention on the local market.
Chrysler's Indonesia manager, Michael Buchanan, said the
partnership with local firm, PT Ningz Pacific, should be
formalized by about the third quarter of this year.
He said this will allow the company to have a greater
influence on the way its products were sold here and enable it to
slowly increase its market share.
"We will have some influence on how the product is marketed
and what we bring in and advertising and those kinds of things,"
Buchanan said.
"We think the Indonesian market is going to be a pretty
substantial market in years to come and we would like to get a
foothold here and start introducing some of our product," he
said.
Chrysler currently sells the Jeep Wrangler and Jeep Cherokee,
although the slow-selling Wrangler is about to be discontinued.
It will not be replaced with the new model -- which was
launched in the U.S. last year -- because it is not available in
completely knocked down kits.
"There are some Wranglers left that we will finish production
on within the next two or three months and from that point on it
will be just the Cherokee," Buchanan said.
Despite the loss of the Wrangler, Buchanan said Chrysler hoped
to sell about 1,500 cars this year -- up from 1,000 last year.
To help achieve this target, the Rp 115 million upmarket four-
wheel drive Cherokee will receive a facelift about July.
Although the 4000cc straight-six engine and other mechanical
underpinnings remain largely unchanged, the car gets a new, more-
rounded exterior and a whole new interior offering improved
ergonomics.
Buchanan said he believed 1,500 sales with just the one model
was achievable as volumes last year were hampered by lack of
supply.
"At present, we have limited production capabilities because
we are moving our manufacturing into a different plant," he said.
"We haven't been able to produce since October last year so we
really won't have inventory to sell coming off the production
line till April, so it has really put a crimp in the volume that
we could do."
Next year, Buchanan expects volumes to increase even more
substantially as the company adds a second model to the lineup in
the form of the upmarket people mover, Voyager.
The 3300cc V6-powered Voyager will be offered with a high
degree of equipment and comfort levels and is expected to be
priced to compete with Nissan's Serena at about Rp 100 million.
Power to the front wheels will be via a four-speed automatic
transmission.
Inside, passengers are well catered for with accommodation for
seven and features which could include air conditioning, leather
upholstery, all things electric and dual air bags.
Although timing for the launch has yet to be determined,
Buchanan said he hoped to get the Voyager on sale by the first
quarter of next year. He said this could enable the company to
add a further 1,500 sales to its 1998 tally.
"If we can launch at the beginning of the first quarter and do
some promotions with it, it is such a popular product that we
could get 1,500 sales out of it," he said.
"Every country it has been launched in, it has been very
successful and I see no reason why it wouldn't be that way here."
Although Chrysler has stated its firm commitment to the
Indonesian market, it could still be some time before the company
sells sedans here.
Michael said there was still no real market for the company's
midsized sedans in Indonesia yet and the smaller Neon would be
too expensive to be able to compete.
"Those cars are really a middle-class oriented car and I think
it will be a couple of years before the middle-class in Indonesia
is stepping up to buy that kind of car," Buchanan said.
"We are going to be a small niche market player for now and
see how the market develops."