Sat, 06 Dec 1997

Mitsubishi to launch new Galant here early next year

By John Aglionby

MITSUBISHI marked the sale of its one millionth vehicle in Indonesia this week by announcing that the new Galant would be available here from the very beginning of next year.

The deputy president director of PT Krama Yudha Tiga Berlian Motors, Herman Latief, said that the sedan, with a 2.5-liter V6 SOHC 24-valve engine, would go on sale next month.

The new sedan is 5mm shorter than its predecessor but the redesign means there is 40mm more leg room than before. It is also 20mm higher, providing a noticeably more comfortable ride for driver and passengers alike.

Improved safety features include larger cross-section side sills and reinforced frame components that, according to company data, have greatly improved the car's side-impact performance. ABS is also standard.

The plastic fuel tank is under the rear seats and has also been surrounded by the body frame to increase its protection in the event of a rear-end collision.

Herman accepts that sales of the new car will not be brilliant in the short term.

"The automotive sector will probably be very bad next year given the economic situation. If we can just survive, I will be happy," he said.

"We have prepared for the worst but are praying for the best. We will try to do our best but it will be very difficult."

He predicted that production in Indonesia might drop by up to 50 percent.

In the three months from August to October this year, sales of sedans dropped by 28 percent. Category one commercial vehicles (cv) -- such as Panthers and Kijangs -- by 30 percent, category two cvs by 48 percent and category three cvs by 53 percent.

Despite these reductions, Herman is hopeful jobs will not have to be shed.

"Firing people is the last thing I would want to do," he said.

"We will take all other options first. And anyway, training people costs a lot of money so it is not worth firing people just because of a short-term market downturn."

Barring a disaster for Toyota in the last 25 days of the year, Mitsubishi is also unlikely to repeat its success of last year and lead total sales in Indonesia.

"Regrettably, we will not be number one this year because the new Kijang has performed very well and we don't yet have the answer to Kijang, although we're working on one," Herman said.

Last year, Mitsubishi sold 76,000 vehicles, including trucks, in Indonesia, about 2,000 more than Toyota.

This year, the figures are likely to be from 85,000 to 90,000 for Toyota and about 10,000 less for Mitsubishi.

Herman also said that Mitsubishis sold in Indonesia would not have the new direct injection (GDI) engines, which improve efficiency and are more environmentally friendly, by 2003 -- a target outlined by the company's Japanese parent.

"That was a target set for the Japanese domestic market. It will be two or three years after that by the time all Mitsubishi cars in Indonesia have GDI engines."