Timor distributor drops sales target from 4,000 to 2,500

Timor distributor drops sales target from 4,000 to 2,500

JAKARTA (JP): PT Timor Distributor Nasional, the distributor
of Timor cars has lowered its sales target from 4,000 a month to
between 2,500 and 3,000 a month because of low domestic demand.

The company's new president director, Soemitro Soerachmad,
said yesterday sales plunged to 980 units last month from 3,300
units.

The high sales in January, which were above the company's
target, was because of the traditional buying spree before Idul
Fitri, he said.

The post-Idil Fitri slump was also normal, he said.

"Thus, the fall in sales last month was not only experienced
by Timor but also other automotive companies," Soemitro said.

Since October Timor Distributor had sold 11,200 of the 16,000
Sephia sedans it imported from South Korea's Kia Motors. It plans
to import 45,000 sedans this year. The Sephia sedans are
relabeled here as the Timor S515.

Soemitro said the company planned to sell 45,000 cars this
year but was pessimistic this could be achieved in the present
market.

He said Timor Distributor was targeting big buyers like state-
owned companies, big private companies and government offices to
lift sales.

Soemitro promised they would not be coerced into to buying
Timor cars.

The Timor national car project was undertaken by President
Soeharto's youngest son, Hutomo Mandala Putra, via his company PT
Timor Putra Nasional.

The project has caused controversy because Hutomo was granted
tax and tariff breaks to import cars from its partner Kia Motors
pending the completion of Timor Putra's manufacturing plant in
Indonesia.

Timor Putra and Kia started building a plant in Cikampek, West
Java, earlier this year.

The project has drawn protests from Japan, the United States
and the European Union. The World Trade Organization has yet to
settle the dispute.

Soemitro said Timor Putra had bought the patent of Sephia cars
from Kia. The agreement will be fully implemented when Timor
Putra starts making the cars at its Cakampek plant next year.

Under the agreement on patent purchase Kia receives a
percentage of the sales of the Timor S515 as payment for the
patent.

Timor Putra is entitled to sell the cars domestically only. It
needed special approval from Kia to export the cars.

Timor can freely export cars it makes which are different from
Sephia sedans.

"The car is considered different from Sephia type however
small the changes we make in the platform, like using different
bumpers," he said.

Soemitro said Timor Putra would launch a Jeep Timor 520, and a
new Timor sedan, Timor S 515i, soon.

Soemitro has replaced Soeparto Soejatmo as president director.
Soeparto has been appointed chairman of Timor's research and
development department. (jsk)