General Motors To Shutter Manufacturing Operations In Indonesia1
On Thursday, February 26th, 2015, General Motors announced plans to discontinue vehicle production at its manufacturing plant in Bekasi, Indonesia, and transition to a national sales company in the Southeast Asian country.
Located near Jakarta, the GM Bekasi factory employs 500 people and builds the Chevrolet Spin MPV. All 500 jobs will be lost when manufacturing ends in June 2015. After the transition to a new national sales company, GM Indonesia will continue to sell its Chevrolet vehicle lineup in the country through its dealer network. Chevrolet’s current Indonesian-market lineup consists of the Orlando, Captiva, Colorado, Spin and Aveo (Sonic); the latter two vehicles will soon, however, be replaced by the Trailblazer.
The Bekasi plant first opened in 1995, but was shut down a decade later as Japanese brands, led by Toyota, began to dominate the Indonesian market. GM re-opened the plant two years ago with the launch of the Spin, which was designed for developing markets such as Southeast Asia, India, and South America.
Over the next few days, GM Indonesia chief Michael Dunne is expected to leave his position and be replaced on an interim basis by GM Indonesia Chief Financial Officer, Pranav Bhatt.
In addition, GM will also shift its attention and branding to Crossovers and Sport Utility Vehicles (SUVs) in the market. According to GM, the developments are “part of its ongoing focus on strengthening the performance of its global operations”.
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