GM Shuts Down Factory in Indonesia, Moves to India
3 March 2015 14:54 WIB
TEMPO.CO, Mumbay - General Motors' (GM) decision to shut down their Chevrolet Spin assembly plant in Indonesia bring good news for India. By June 2015, the American carmaker will relocate their plant from Bekasi, West Java, to India in order to boost sales of the company's Spin variant.
The Chevy Spin, which failed to attract the Indonesian market, will be GM's new weapon to compete in India's automotive market. Currently, Chevy Spin only manages to cover 2.26 percent of the total market share in Indonesia.
"From the company's perspective, we do not want to call this attempt a speculation," said spokesperson for GM India as reported by the Indiatimes.
The company will move all of its factory equipment from Indonesia to India, and will continue to develop a new Spin model, which planned to be launched in 2016.
Vice President of GM Stefan Jacoby said that the factory in Indonesia will be shut down because the company cannot compete with Japanese carmakers. With its low retail price, the Chevrolet Spin actually burdens the company with its high production cost due to imported parts that the car required to use.
ANDI RUSLI | INDIATIMES | REUTERS