Suzuki to stay in RI

Suzuki to stay in RI

TOKYO (Kyodo): Mitsubishi Motors Corp. and Suzuki Motor Corp. have agreed to extend their joint automobile operation in Indonesia for five more years in view of rapid market growth in the country, spokesmen for the two carmakers said.

Since 1991, based on a five-year tie-up agreement, the companies have shared automobile parts for compact commercial vehicles they produce and sell in Indonesia.

The accord aimed primarily at reducing manufacturing costs was to expire this year. However, the country's market has grown into the second largest in Southeast Asia, following Thailand's.

Also, the Indonesian government has announced a "national car" project to produce vehicles with local capital only, spurring the companies to continue their cooperation as this is seen as a further increase in the market size, the spokesmen said.

They said the parts sharing was for 1300 cc cab-over minivans and minitrucks that are on strong demand in the Indonesian market.

Such parts as engines and instrument panels are designed and manufactured, but parts like shafts and transmissions are standardized and supplied mutually.

The vehicles are sold under their respective brand names and through local dealers.

Output showed stable growth at both companies in 1995, at 1,500 vehicles each per month, the spokesmen said.