General Motors set to export 1000 jeeps

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)