General Motors set to export 1000 jeeps

JAKARTA (JP): PT General Motors Buana Indonesia is targeting to export 1,000 Opel Blazer jeeps next year to a number of countries in Africa and the Asia-Pacific region, the company's president, William S. Botwick, said yesterday.

"This year, key export destinations are likely to include South Africa, Kenya, Namibia and Malaysia. The first export shipment is scheduled for October. But there is no target this year." he told the press at a ceremony to commemorate the company's third anniversary.

Botwick said the company will also export automotive components to those countries.

General Motors Buana, formerly called PT Garmak Motor, is 40 percent owned by Probosutedjo, the chairman of the Mercu Buana Group, and 60 percent by General Motors of the United States.

The joint venture firm was established in September 1993 to produce Opel Blazer jeeps outside of General Motors' production base in Detroit, the United States.

Botwick said General Motors Buana, with a total investment of US$110 million, currently has a production capacity of 600 units per month. "Next year, we'll expand the capacity to 800 units per month," he said.

According to Botwick, General Motors Buana targets to sell 5,500 Opel Blazer jeeps domestically this year. Until now, the company has managed to sell 2,500 units.

Meanwhile, Probosutedjo said his company plans to fully manufacture Blazer jeeps in Indonesia to minimize production costs.

Currently, Blazer jeeps are sold at Rp 72 million (US$31,168) per unit, as compared to about Rp 50 million for jeeps of a similar type.

"When the vehicle is fully manufactured here, we can decrease the selling price to only Rp 50 million," Probosutedjo said, adding that he expects his company to lower the price late next year.

He said Blazer currently has 40 percent local content. "I expect that in three years, the local content will be 100 percent because we already have a good production line here," he said.

At yesterday's ceremony, Probosutedjo asked General Motors to increase investments in Indonesia, ignoring the government's national car policy, which provides tax breaks to only one company, PT Timor Putra Nasional, for its sedans under the local brand name of Timor.

"I'll go to Detroit to persuade General Motors to expand its operations here. We have a potentially huge market in this country. General Motors should take this opportunity. Otherwise, other foreign companies will come," said Probosutedjo, who is a half-brother of President Soeharto.

Japan, the United States and Europe have protested against the national car policy, accusing it of being discriminatory against other car producers.

"I've told General Motors not to be hesitant to invest here because the future market in this country will be much bigger than that of Thailand," Probosutedjo said.

General Motors announced recently that it had already invested $750 million in Thailand to produce the Opel sedan. (13)