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.