Indonesia is the biggest vehicle market in Southeast Asia, and Ford Motor Company is running away from it.
The automaker’s announcement earlier this year that it plans to stop selling vehicles in the country came as a shock to dealers, who now want Ford to compensate them in a big way, Reuters reports. (Read More…)
The big Blue Oval is setting in the Land of the Rising Sun.
That, Volkswagen’s labor boss doesn’t like what he hears, Detroit’s big show and Kia’s big plans for the Rio … after the break! (Read More…)
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.
Last year, Renault-Nissan resurrected Datsun, positioning the brand for emerging markets — like India, Russia and Indonesia — with a portfolio of models that would attract new, young consumers whose wallets were a bit thin.
It’s not quite working out thus far.
Emerging markets have been a big theme at TTAC for the past few years, with our coverage going beyond the cursory articles on automotive developments in the BRIC countries. Our articles on places like North Africa and Indonesia aren’t always the most popular, but we keep an eye on them for a very important reason. These countries are the final frontier for growth in the automotive sector.
Datsun’s newest vehicle, unveiled in Jakarta today, is a stretched version of the Go, dubbed the Go+. While this will elict a shrug of the shoulders for most of you, it’s an astute move by Datsun.
The Datsun Go is about to get some company, in the form of two new models developed for the Indonesian market.
The wraps are finally off the first Datsun in decades – dubbed the Go, this will be Nissan’s major push into low cost motoring, with a starting price under $6,700.
As far as emerging markets go, Indonesia is one of the hottest. “The country of 240 million people bought one million cars last year, and sales by some estimates are expected to double over the next three years,” says Reuters. The only trouble: Most of the cars are and will be Toyotas. GM wants to do something about it with a no-frill people mover designed in Brazil. (Read More…)
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.”