Indonesian Political, Business & Finance News

March uncertainties force GM to delay launching of Blazer

| Source: JP

March uncertainties force GM to delay launching of Blazer

By John Aglionby

ANTICIPATED political and economic uncertainties in the next
month have prompted General Motors Buana Indonesia (GMBI), the
local arm of American auto giant General Motors, to delay the
launch of the 1998 Blazer.

Originally scheduled to be unveiled to Indonesian journalists
last Monday, the media launch has been put back a month and the
vehicle will not go on sale "probably until after May", according
to GMBI marketing director Terence Johnson.

He said the company was waiting, on the political front, until
the country had settled down again after the General Session of
the People's Consultative Assembly, due to run March 1 through
March 11 and elect a new president and vice president.

The economic reasons behind the decision are twofold. "We want
to wait for the markets to settle again if the currency board is
introduced," Johnson said, adding that sales are expected to
decline in the next few months, which would not be an auspicious
time to launch a new product.

GMBI began the year extremely well, however, selling 305
Blazers and 16 sedans in January and increasing its market share
in the sport-utility market.

Although not officially announced yet by the Association of
Indonesian Automotive Manufacturers, total vehicle sales for last
month were around 14,500 according to several industry sources.
This marks a decrease of more than 50 percent on January 1997,
when sales exceeded 30,000; but did not surprise any industry
executives.

The consequence for GMBI could be that it is will have
difficulty marketing its old Blazer for another two months,
although Johnson is hopeful people will still buy it to beat the
inevitable price hike that will come with the new model.

The current model is by no means a bad vehicle, although it
handles and looks much better than it performs. The problem is
that its engine -- 2.2 liters and four cylinders -- is not big
enough for the size of the vehicle.

Its acceleration can only be described as sluggish, the spirit
is willing but the vehicle is physically incapable, which makes
overtaking on country roads an even more hazardous sport than it
is normally.

And as for burning off at the lights, well, it would beat a
Kijang or a Panther but its chances would be minimal against one
of its true competitors, such as Nissan's Terrano or Mitsubishi's
Pajero. Its racing aspirations are also curtailed by the gearbox,
which is not the smoothest on the market, particularly when
shifting between the higher gears.

In North America and Europe, a V6 version is available and I
can imagine this would make a huge difference to the performance.
Johnson said it would also make a huge difference to the price.
"It would make the Blazer 60 percent to 70 percent more expensive
and we don't want to be in that price range."

Last month, GMBI president William Botwick said the new Blazer
would have an improved engine. If it is noticeably better then,
even with the Monopoly money prices of vehicles these days, the
Blazer would be seriously worth considering.

Current prices range from Rp 105.8 million (US$11,000) for the
SLi, Rp 124.2 million for the DOHC and Rp 136.7 million for the
LT. Prices have not been fixed for the 1998 versions but don't
expect to cough up at least an extra Rp 15 million to Rp 20
million.

It is extremely comfortable -- although short people wearing
seat belts in the back might worry about being strangled -- with
plenty of legroom and headroom both in the front and the back.
The driving position is such that there is almost no blind spot
to speak of whatsoever.

If a vehicle is a proper sport-utility, it must handle well
off road. The Blazer's problem in this regard is that it is only
two-wheel drive. It has no problem with rough, muddy tracks
(thereby satisfying most people's off-road ambitions) but I do
not know of anyone who has dared to take one anywhere more
adventurous.

The independent front and leaf-sprung rear suspension is good
enough for one not to notice it -- on or off road -- or for
luggage to be tossed around in the trunk, which is more than big
enough for five people's baggage for a weekend away.

Apart from the engine, the air-conditioning system also needs
improving as it seems there is no way to recirculate the air that
is already in the vehicle and so prevent noxious fumes swamping
the interior.

This should be remedied in the 1998 model which I must say I
am looking forward to but would still recommend comparing to the
competitors before buying.

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