Opel defies trend as vehicle sales blaze ahead

Opel defies trend as vehicle sales blaze ahead

By John Aglionby

A new rare breed has been discovered in Indonesia, a non- exporting company that is expanding production despite the near- paralyzing effects of the economic crisis.

PT General Motors Buana Indonesia (GMBI) falls into this category with its sport-utility Blazer.

The local arm of American automotive giant General Motors, riding high after buying out its local partner -- President Soeharto's half-brother Probosutedjo, has increased production to 20 vehicles a day to cope with the high demand.

"There's no magic formula," confesses GMBI marketing director Terrence Johnson. "We've just been very fortunate that demand for the Blazer is as strong as it is."

Although prices have gone up twice this year -- the latest hike was on Feb. 6 -- Johnson believes demand is being driven "by people wanting to buy before the price rises catch up with the amount the currency has depreciated by."

This will happen when the new Blazer, unveiled at the Detroit Motor Show last month, becomes available in Indonesia, some time in the next two months.

GMBI is also benefiting from the rising popularity of sport- utility vehicles. People want to be seen in something other than a people mover or a sedan and the Blazer is one of the cheaper options.

The latest prices -- off the road -- are Rp 136.7 million (US$19,000) for the LT, and Rp 124.2 million for the DOHC.

Johnson said the company had run out of the SLi and would not be replacing it before the new Blazer is launched here.

Demand is such that if you ordered a Blazer today you would have to wait about three weeks to take delivery of it.

Johnson also predicted that while 1998 sales were "tracking very close to last year's figures", the good times would not last. "We sold more than 300 Blazers in January which was an anomaly, although we're very happy about it," he said.

"Once more price rises have come into effect we expect the situation to normalize, which means sales will probably be 50 percent down on last year."

Results are also in of GMBI's Lebaran siaga drive, the third time the company has set up service centers and refreshment areas along 12 of the most popular roads used during the post-Ramadhan holiday, such as the northern coast route and the road over the Puncak pass.

Johnson said that 450 Opel drivers left their cards behind and 310 non-Opel drivers also stopped, either to have their vehicles checked, a break from the congestion or both. "The reason for it derived out of the need that we felt as a new company to demonstrate that we were always with our customers regardless of where they were; to show that there are faces behind the company (name)."

No breakdowns were reported but Johnson said GMBI was very pleased with the operation and only wished it could set up more of the pit stops.

"They were really appreciated even though no one actually broke down," he said.