GM prolongs prices of Opel cars

GM prolongs prices of Opel cars

JAKARTA (JP): PT General Motors Indonesia, the producer of
Opel vehicles, said on Monday it would maintain its current
prices, despite a cut in import duties for imported cars.

Director of sales, marketing and aftersales David Purcell told
The Jakarta Post that General Motors' main product -- the Opel
Blazer sport utility vehicle -- was locally assembled, so the
impact of the new duties and tax structure would be minimal.

"At the moment we will maintain our current prices. It is too
early for us to make any decision, as there are many other
factors that affect our pricing," he said.

Purcell said Opel Blazer vehicles were assembled at the
General Motors' plant in Bekasi, West Java, with a local content
of 20 percent.

Under the former automotive regulation, as a locally assembled
vehicle with a 20 percent local content, Blazer was eligible for
import duties of 30 percent and a luxury tax of 35 percent.

On Thursday the government announced a new automotive policy,
in which import tariffs and luxury taxes on automobiles were
restructured and incentives removed for vehicles with high local
content.

Under the new policy, import tariffs on completely built up
(CBU) commercial cars category one, such as utility vehicles,
were cut to 45 percent, from 105 percent previously. Luxury taxes
were set at between 10 percent and 30 percent, depending on
engine capacity, compared to 35 percent previously.

Import duty on complete-knocked-down (CKD) vehicles, or
locally assembled utility vehicles, was set at 25 percent.
Depending on their engine capacity, luxury taxes on CKD vehicles
will be set between 10 percent and 30 percent.

"CBU vehicles in the same category with Opel Blazer may enjoy
a decrease in import tariffs and luxury taxes under the policy.
However, as a locally assembled vehicle, the changes in the duty
applied to Opel Blazer are minimal," he said.

Purcell said the new Opel Blazer LT was currently priced at Rp
209.49 million, while the new Opel Blazer DOHC was Rp 188.67
million. Both prices do not include registration fee, transfer-of
ownership tax and vehicle tax.

General Motors' public relations manager Helena Abidin said
the company hoped Indonesian customers would not think the new
automotive policy would reduce car prices.

"There are misinterpretations that the new automotive policy
will lower car prices. We want our consumers to understand that
the reduction in import duties is applied to CBU vehicles, not
locally assembled vehicles like our Opel Blazer. We hope that
potential buyers do not expect substantially lower prices," she
told the Post.

Helena said the company, the Indonesian arm of U.S-based
General Motors, sold 350 units of the Opel Blazer in May, leading
the sport utility vehicle segment with a 50 percent market share.

The new automotive policy, which cut import duties on several
automotive components and abolished the local content
requirement, is expected to lower prices of imported four-wheeled
vehicles and motorcycles.

Potential buyers have reportedly delayed purchasing vehicles
in the expectation of lower prices as a result of the new policy.
(gis)