Ford and Indomobil to offer credit option
Ford and Indomobil to offer credit option
By Russell Williamson
Ford Credit International and PT Indomobil Investment
Corporation have joined forces to offer car buyers a range of
retail finance packages.
Through a new joint venture company, PT Primus Financial
Services (PFS), consumers in the market for Ford products, or any
other vehicles sold through Indomobil franchises, now have
greater and easier access to finance.
Indomobil is the second largest vehicle assembler and
distributor in Indonesia with annual sales of Suzuki, Mazda,
Nissan, Volvo and light commercial vehicles of around 75,000
units. The company also sells around 200,000 Suzuki motorcycles a
year and will soon add Volkswagen and Audi to its stable.
Ford Credit is the largest automotive finance company in the
world and has recently established new operations in Japan and
Korea.
Indomobil has a 45 percent stake in Primus with the remainder
owned by Ford Credit which is part of Ford's Financial Services
Group.
Although Primus' financial services are primarily aimed at
customers purchasing Ford and Indomobil products, they will also
be available for any other makes which may be stocked by Ford or
Indomobil dealers.
Retail loans and leases to individuals and businesses are
offered for any new or used cars, light or heavy commercial
vehicles and new motorcycles.
Primus' Finance Director, Barry Satz, said the establishment
of a finance facility was an essential part of offering
customers the best service possible and would also improve
vehicle sales.
"Ford Credit has found that in other markets, this excellent
customer service translates into increased customer loyalty,
demonstrated by an increased rate of repeat purchases of Ford
vehicles," Satz said.
These benefits were also acknowledged and welcomed by the
chairman of Indomobil's Executive Committee, Soebronto Laras.
"Ford Credit's auto financing expertise will help strengthen
Indomobil's position in a very competitive auto market," he said.
Primus is initially concentrating on establishing its presence
in major market areas such as Jabotabek and Surabaya and over
time hopes to be able to offer its products throughout Indonesia.
As part of the joint venture agreement, the company also
purchased Indomobil's share of Indoarta, an automotive financing
joint venture with dealers in Surabaya.
In addition to retail financing, Primus may also offer
dealership and inventory financing, as it does in other markets,
in the future.
The establishment of Primus with Ford Credit holding a
majority stake may also mark a new beginning for Ford in
Indonesia.
While the company only sold about 3000 vehicles in 1995, it
plans to launch a new model this year and is also investigating
manufacturing and assembly opportunities.