GM Reactivates Indonesia

Bertel Schmitt
by Bertel Schmitt

GM knows where the growth is: In the emerging markets, BRICs and beyond. GM announced today it will “invest $150 million in the reactivation of its Bekasi manufacturing facility in West Java, Indonesia.”

The plant will “begin production of a new line of people movers for Southeast Asia in 2013,” the statement says. GM’s presence in the 237 million country had languished. In 2008, GM’s Indonesian had “only a 0.56 percent share in the country’s new car market,” reported the Jakarta Globe in 2009, along with the news that any expansion would have to wait until GM found the money. Now, GM found the cash and is building an 11-hectare plant that will initially manufacture up to 40,000 vehicles per year.

GM will “introduce new vehicle manufacturing equipment and standard processes, including its Global Manufacturing System.”

No word on nameplate, design specifications and pricing. Last year, GM’s sales in Indonesia rose 72 percent to 4,500 units. In the first half of 2011, sales were up another 18 percent on an annual basis to 2,500 units. The new plant hopefully will make that grow. Just have a look at the picture.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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