Delphi Indonesia seeks to boost sales

Delphi Indonesia seeks to boost sales

JAKARTA (JP): PT Delphi Automotive Systems Indonesia, a
producer of wiring harness systems, opened a new US$12 million
factory in Lippo Cikarang, Bekasi, on Wednesday which it expects
to help in doubling its sales.

"With the increased production capacity and marketing efforts,
we're confident about our sales target," Delphi Indonesia
president David Clary told The Jakarta Post.

With the new plant situated on a 14,000-square-meter area,
sales are expected to double to $40 million next year, Clary
said.

The company exports 95 percent of its production, with the
remainder supplied to PT General Motors Buana Indonesia, which
assembles Opel Blazer cars in Indonesia.

Clary said that because of the economic crisis, the company
focused on export markets, including Australia, Japan, Thailand
and the United States.

Delphi Indonesia is a subsidiary of Delphi Automotive Systems
Holding Inc. of the U.S. The company was established as a
division of General Motors in 1995 under a joint venture with PT
Kabelindo Murni. In 1998, Delphi acquired Kabelindo's 40 percent
stake.

Early this year, Delphi spun off from General Motors in a move
to gain more market access, Clary said. "The company could access
customers who are competitors of General Motors."

Delphi employs 200,000 workers at 168 manufacturing sites in
37 countries.

Clary praised the firm's Indonesian employees for obtaining a
zero defect rate in their production line, saying the factory,
which employs 1,400 workers, was the first to achieve the feat.

The company hopes to participate in a future national car
project to bolster its domestic sales, he said. "If they (the
government) bring their car project back, we will be their wiring
supplier."

The company was involved in the assembly of the Timor sedan,
producing 500 units before the national car project was shelved
by the government in 1998. Delphi invested about $700,000 to
supply 2,000 wiring harness systems for the Korean-built sedans,
which were exempted from import taxes. (03)