Mercedes-Benz taps export potential

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.