Mercedes-Benz taps export potential

By Russell Williamson

MERCEDES-BENZ local manufacturing arm, PT German Motor Manufacturing (GMM), expects to more than double exports from its commercial vehicle division within the next three years.

The company is presently exporting truck parts to Mercedes assembly operations in Turkey, Vietnam, South Africa and Egypt.

A spokesperson for the company said what had begun as a small division in late 1995 now had the promising beginnings of a very profitable business.

She said the increase in exports offered great potential for the future and proved to Mercedes executives in Germany, that the Indonesian operation was proficient enough to supply countries outside the domestic market.

Turkey is currently the most valuable market with exports of components for truck cabins this year valued at Rp 3.5 billion.

The components being exported to Turkey are largely pressed metal parts and subassemblies including floor pans and fire walls for trucks similar to the medium-duty MB700 sold locally.

To the end of July this year, GMM had shipped 500 parts to Turkey and this is expected to rise to about 3,300 in 1999.

The company is also exporting completely-knocked-down kits of its MB700 truck to South Africa and Egypt and semi-knocked-down kits of the same vehicle to Vietnam.

Although these exports only totaled 42 kits this year, Mercedes expects this to increase over the next few years.

In addition to the parts and truck kits, GMM has also exported jigs for the assembly of its trucks to Turkey and South Africa with further orders for Egypt and Vietnam.

The jig has been designed in Indonesia by GMM and is manufactured by a local contractor.

It is used to hold all the components of the truck cabin steady while they are welded together.