Mercedes embarks on bold new path with new models

By John Aglionby

FASTEN your seat belts and prepare for an exciting 18-month journey into the unknown.

That is the message being given to Mercedes aficionados here as the German car manufacturer prepares to broaden its passenger car range and diversify into market sectors previously unassociated with its Indonesian image of nothing but luxury vehicles.

Earlier this year, cinema-goers had a brief taste of what's to come with the appearance of the compact off-road M-Class in the Jurassic Park sequel Jurassic Park: The Lost World.

However, it will be some time before the four-wheel drive vehicles with an innovative traction control system, electronic stability control program and independent wheel suspension on the front and rear axles will be available to tackle the rigors of this country's roads.

The president director of sole Mercedes Benz distributor PT Star Motors Indonesia, Frank Messer, said: "Currently, the M- Class is only available in left-hand drive in the United States. We have to wait until a right-hand drive version is made.

"The plan is to first bring in about 50 CBU units by the end of next year. I believe this is the right product for the Indonesian market, and if it takes off as expected, then we would start importing CKD and assemble 1,000 to 2,000 a year."

Long before the M-Class arrives however, Messer expects to see several other Mercedes models on sale here.

First to come, hopefully before the end of the year, is likely to be the SLK. This is providing Star Motors can convince the authorities that it is just a sporty two-seater with a hardtop roof that just happens to retract in 25 seconds, rather than an out-and-out sports car, because sports cars are banned here.

A plus point in their campaign is that at 2.3 liters, the engine does not seem that large. But it also contains a supercharger, or Kompressor in Mercedes parlance, which makes a huge difference and should provide more than enough power considering the state of the traffic here.

"We will only bring in a very few units, about 30 to 35," Messer said. "Lots of people will be interested in it but we just can't get enough from Germany.

"Also it is a very niche market here, particularly as it is a luxury car and we will be bringing it in completely built up. This means that we have to pay 200 percent import duty, 35 percent luxury sales tax and VAT on top of that. It will not be cheap."

Chasing hard on the heels of the SLK (in terms of likely arrival time, not performance) will be the biggest break with Mercedes' traditional image, the A-Class.

Messer accepts that it will not be easy to sell a car in Indonesia with a 1.4 liter or 1.6 liter engine, that is 3.57 meters long and weighs only about 1,000kg.

"I am not yet sure that it will be a big success immediately in Asian countries because people are buying image with us and the A-Class is definitely not an S-Class.

"But as time passes, I am confident that as in Europe, people will see that this type of vehicle is the answer to the traffic and environmental problems in big cities."

It cannot be denied that the A-Class is spacious inside (up to 1,740 liters of cargo space with only the driver's seat up) and fuel efficient. And with its "sandwich concept" system -- the engine is above as well as in front of the passenger compartment so in the event of a head-on collision, it gets shunted underneath the body -- can match the E-Class in safety.

But Messer will have his work cut out because, as has been highlighted twice in the past week, few people here know, or seem to care, much about the benefits of unleaded gasoline.

And because many car owners in Indonesia have drivers, the need to have a handy-to-park town runabout is not at the top of most people's list of priorities.

He recognizes this. "We will bring in only five to 10 cars and give opinion leaders a chance to see what the future of city driving is likely to be. We have not yet planned a marketing strategy beyond that."

If the A-Class does take off, Messer does not rule out importing the super-compact, super-advanced Smart Car, designed in connection with Swiss watch manufacturer Swatch.

By this time next year, the CLK coupe should also be on sale here. With its sleek, sporty appearance, this four-seater (those sitting in the back must have short legs) is somewhere between a C-Class and an E-Class.

However, it is very nice to drive and should appeal to customers who like cars and driving. A 2.3-liter supercharged version will be on sale here, unlike in Europe where a 3.2-liter engine is available.

Messer's confidence in the CLK's potential, it has proved popular since its launch in June, is shown by the fact that he hopes to import it in CKD form and assemble it here.

His last break with the past is to import, by the end of the year, the C230 in hatchback form. "This has been a big success in Europe. They like it for its performance but at the same time, its ability to transport a lot of cargo," he said.

It is undoubtedly a risk though because apart from Mazda, there are few other such vehicles on Indonesian roads.

Hatchbacks are viewed here as neither luxury cars nor people movers and so people tend to shy away from them. Only time will tell whether Mercedes can alter this image.

But not surprisingly, Messer is talking up his bold plan. "I do not see this expansion as a big risk. It is more of a logical development because it is impossible to survive in a niche market.

"Our aim is to keep our position as a premium producer of cars at premium prices but also to have the best car in each sector."

Success is by no means guaranteed, especially with the A- Class, but the cachet of the three-pointed star and Mercedes' track record should help smooth out the rocky road ahead.