The Truth About Cars » chevrolet spin http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Mon, 29 Jun 2015 20:37:28 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.2 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars » chevrolet spin http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com GM Retreats From Indonesia In Major Blow To Emerging Markets Strategy http://www.thetruthaboutcars.com/2015/02/gm-retreats-indonesia-major-blow-emerging-markets-strategy/ http://www.thetruthaboutcars.com/2015/02/gm-retreats-indonesia-major-blow-emerging-markets-strategy/#comments Thu, 26 Feb 2015 15:29:59 +0000 http://www.thetruthaboutcars.com/?p=1008714 Indonesia has long been touted as one of the next major emerging markets, and only four years ago, GM was set to make a major push in the Southeast Asian nation. But in a major about face, GM is essentially giving up on Indonesia, ending an 80 year manufacturing presence and transitioning solely to a sales […]

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Indonesia has long been touted as one of the next major emerging markets, and only four years ago, GM was set to make a major push in the Southeast Asian nation. But in a major about face, GM is essentially giving up on Indonesia, ending an 80 year manufacturing presence and transitioning solely to a sales and marketing arm.

According to Reuters, GM will shutter its Bekasi factory which was producing the Chevrolet Spin minivan, a product that GM intended to go up against market leader Toyota and its Avanza minivan. Toyota dominates 90 percent of the Indonesia market and the Avanza is Indonesia’s most popular car. Of the top ten selling vehicles in Indonesia, the Spin ranked in 8th place last year, with brands like Toyota, Honda and Daihatsu (another Toyota brand) dominating the market.

Indonesia is a particularly enticing market for many auto makers. It is the most populous nation in Southeast Asia and the largest economy in the region as well. It also has one of the lowest rates of car ownership, with 32 vehicles per 1,000 people, compared to 132 per 1,000 people in Thailand and 300 per 1,000 people in Malaysia. The locally built Spin was supposed to give GM a leg up in Indonesia, but as another Reuters piece notes, GM only advanced seven tenths of a percent in market share during their 80 year run in Indonesia.

Reuters claims that GM will pivot to a more SUV and truck focused brand, along with establishing a foothold for its Chinese affiliate brands like SAIC’s Wuling. But the minivan is Indonesia’s most popular vehicle, since it allows for carrying multiple passengers in comfort while the high ground clearance is suited for the frequent floods and rough terrain of the island nation. While Wuling offers some low cost vans, offerings like Chevrolet’s Trailblazer and Captiva will likely be more expensive while offering qualitative disadvantages.

GM’s Stefan Jacoby told the news service

“We could not ramp up Spin production to boost the volume as we had expected … although the product was really good. The logistics chain of the Spin was too complex; we had low volume so we could not localize the car accordingly, and from the cost point of view we were just not competitive.”

While the Spin is popular in Brazil and other markets, it was unable to dethrone the Avanza, which uses crude but cost-effective body on frame construction which means it can be manufactured in a relatively easy, inexpensive fashion. Jacoby claims that the end goal is to turn Indonesia “into a sustainable business model.” If the last 80 years are any indication, it’s not looking good.

 

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QOTD: GM’s Indonesian Foray http://www.thetruthaboutcars.com/2013/07/qotd-gms-indonesian-foray/ http://www.thetruthaboutcars.com/2013/07/qotd-gms-indonesian-foray/#comments Tue, 02 Jul 2013 19:02:42 +0000 http://www.thetruthaboutcars.com/?p=493970 Reuters takes a look at GM’s attempts to turn around their decades-long slog in Indonesia, with this gem highlighting the nature of their struggle. “We started in Indonesia in 1938. We have been so successful, we have seven-tenths of a point of market share in 75 years. Are you (kidding) me?” Tim Lee, head of GM’s international […]

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Reuters takes a look at GM’s attempts to turn around their decades-long slog in Indonesia, with this gem highlighting the nature of their struggle.

“We started in Indonesia in 1938. We have been so successful, we have seven-tenths of a point of market share in 75 years. Are you (kidding) me?” Tim Lee, head of GM’s international operations, said in an interview. “That is not constancy of purpose.”

While GM has been in the country since before WWII, it’s only now that they have the kind of product that Indonesians actually want to buy. The Chevrolet Spin, above, will take on cars like the Toyota Avanza, Indonesia’s perennial best-seller, and other compact MPVs that dominate the Indonesian auto market.

Indonesia is a particularly enticing market for many auto makers. It is the most populous nation in Southeast Asia and the largest economy in the region as well. It also has one of the lowest rates of car ownership, with 32 vehicles per 1,000 people, compared to 132 per 1,000 people in Thailand and 300 per 1,000 people in Malaysia. The locally built Spin should at least give GM a fighting chance in the market, but you have to wonder if they’ll be able to achieve anything they couldn’t have already done in the last 75 years.

 

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Chevrolet To Tease NAIAS With Forbidden Fruit http://www.thetruthaboutcars.com/2013/01/chevrolet-to-tease-naias-with-forbidden-fruit/ http://www.thetruthaboutcars.com/2013/01/chevrolet-to-tease-naias-with-forbidden-fruit/#comments Thu, 10 Jan 2013 16:45:29 +0000 http://www.thetruthaboutcars.com/?p=472832 Obsessive-weirdo fans of low-cost cars can get their thrills at Chevy’s NAIAS stand; despite the new full-size trucks and the C7 Corvette being on display, myself and a cadre of mouth breathers will no doubt be poring over the low-cost cars being put on display by the Bowtie brand, for no other reason than to […]

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Obsessive-weirdo fans of low-cost cars can get their thrills at Chevy’s NAIAS stand; despite the new full-size trucks and the C7 Corvette being on display, myself and a cadre of mouth breathers will no doubt be poring over the low-cost cars being put on display by the Bowtie brand, for no other reason than to avoid the rush of anxiety-inducing crowds.

Among the products being brought to NAIAS

-The Chevrolet Trax, a bowtie-badged Buick Encore

The Chevrolet Orlando, which TTAC reviewed earlier

-The Chevrolet Spin, an Indonesian compact minivan

-The Chevrolet Sail, a Chinese subcompact

-The Chevrolet Onix, a Brazilian subcompact

Zemanta Related Posts Thumbnail 004-intl-chevrolet-detroit-cars 003-intl-chevrolet-detroit-cars 002-intl-chevrolet-detroit-cars 001-intl-chevrolet-detroit-cars Chevrolet Spin. Photo courtesy Autoblog

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