GM Restarts Production at its Jakarta Plant

GM has big plans in Indonesia. In the country of 240 million vehicle sales exceeded the one million mark last year and are only expected to increase. The biggest segment in Indonesia that accounts for 40% of purchases are small minivans. Chevrolet believes that its Spin, which is currently manufactured in Brazil is the perfect vehicle for the Indonesian market. GM intends to let the product’s high quality speak for itself and refuses to buy marketshare. In a country with an estimated 2015 per-capita income of about $5000 according to the CIA World Factbook, this is a daring strategy that risks a lot of potential marketshare to other manufactures.

GM has resumed production at its Jakarta plant that had been shuttered. Annual production is about 40,000 units with the first cars built at the facility to be delivered to customers later this week.

 


http://wardsauto.com/plants-amp-production/gm-returns-indonesia-150-million-manufacturing-bet

https://www.cia.gov/library/publications/the-world-factbook/geos/id.html

2 comments to GM Restarts Production at its Jakarta Plant

  • It sounds as though GM is a late-comer to the market. My recollection is that Toyota invested early and is the leader, in contrast to China. So look for an overview of the market.

    Be careful though in using the CIA Factbook for data. In general you’re better off going to the IMF and the World Bank, which are typically up-to-date and provide ancillary data.

  • tommd13

    It will be interesting to see if this strategy pays off for GM, it seems to me like this is a very aggressive strategy for them seeing how per-capita income is about $5,000, as stated by the Factbook. Here is hoping that the quality will speak for itself and they will have nothing to worry about. With Toyota already in the market, GM will have its hands full and will have to rely on more than just quality to gain market share.

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