Indonesian Political, Business & Finance News

Ford Lynx slips quietly onto small car shopping lists

| Source: JP

Ford Lynx slips quietly onto small car shopping lists

By John Aglionby

You have to hand it to Ford.

The economy is in turmoil and the cost of imports is rising
exponentially by the day as the rupiah continues its free fall
but the American company goes ahead and launches a sedan that
many image-conscious Indonesians will see as nothing more than a
taxi without the meter and badge.

With no fanfare whatsoever the fourth-generation Laser, called
Lynx, went on sale this week. It is targeted at buyers in what is
becoming the most competitive sector of the Indonesian automotive
market: nonluxury sedans.

It comes in two forms, a 1.6-liter and 1.8-liter. Apart from
the obvious maximum output (85kW/6,000rpm and 104kW/6,500rpm
respectively) and torque (143Nm/3,500rpm and 166Nm/4,700rpm)
differences, they are identical.

Both are four-cylinder 16-valve electronic multipoint fuel
injection engines with five-speed manual transmission and have
suspensions consisting of front independent McPherson struts with
coil springs, a stabilizer bar and rear independent Quadralink
struts with coil springs and a stabilizer bar.

Fog lamps and CD changer are standard on the 1.8-liter
version.

In this class, antilock brakes, air bags and the latest side-
impact bars are not to be found but the Lynx does include a high-
mounted stop lamp as standard, a safety feature which some of the
competitors do not have.

Local content is only about 8 percent, which is why the cost
is slightly higher than might otherwise have been expected. The
1.6-liter is Rp 65 million (US$14,000) on the road and the 1.8-
liter is Rp 69 million.

The distributor, PT Indonesia Republic Motor Company -- which
is owned 38.5 percent by Bimantara -- accepts the economic
outlook could have been more auspicious but says that it had no
choice over the timing.

Jongkie Sugiarto, the president director of PT Bimantara Cakra
Nusa, said: "Yes the timing is unfavorable and it would have been
better to wait three or four months because we cannot expect too
much from the market. But from the technical point of view, we
had to go ahead.

"We have to replace the old model, which is no longer being
made and so, is no longer available really in the showrooms.

Despite this, Jongkie is confident of meeting his sales target
of about 50 Lynx a month.

"There are so many competitors, such as the Mitsubishi Lancer
and Toyota Corolla and sales of the Timor car show that there are
buyers for sedans as long as the price is cheap enough.

"People want sedans, but they want them at minibus prices and
this is the way that us manufacturers will have to go. We have to
meet market demand."

He predicts that total vehicle sales will drop to between
320,000 and 330,000 next year, with 70,000 being sedans.

The widespread image of the Laser being only a taxi should
also not affect sales, Jongkie believes.

"People may say that it is just a taxi without the badge but
people don't care anymore what cars are used as taxis. For
example in Singapore, Mercedes are being used as taxis.

"We do not produce the taxi model anymore. That was the CT18,
the first-generation Laser."

To make the car more attractive, an extensive after-sales
service package accompanies the car. This includes a two-year
spare parts guarantee, home service call repairs, 24-hour
emergency service and a guarantee to buy back the car at market
price, bearing in mind depreciation over time.

Like General Motors however, Ford is not planning any major
new investments in Indonesia. Jongkie said: "Ford still sees the
national car issue as an obstacle to further investment and all
major new schemes have been postponed until that is resolved.

View JSON | Print