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SAIC Motor Said to Make Vehicles in Indonesia(SinoCast China Transportation Watch Via Thomson Dialog NewsEdge) SHANGHAI, February 02, SinoCast -- SAIC Motor Corp., Ltd. under the wing of Shanghai Automotive Industry Corp. (Group) (SAIC Group), is expected set up a plant in Indonesia before the end of 2007 in partnership with General Motors, a source said. SAIC Motor, if successful, will start to make mini vehicles in the form of CKD (completed knocked down) in Indonesia for the Southeast Asian markets, a bonanza coveted by the Shanghai-based company for long, industry experts said. The company, GM, and SAIC-GM-Wuling Automobile Co., Ltd. has almost completed acquisitions of local facilities in Indonesia, and is considering the formation of a joint-venture plant in the country, the source disclosed. GM will hold a half stake in the plant, he added. SAIC-GM-Wuling, a mini vehicle venture formed by SAIC Group, GM, and Liuzhou Wuling Automotive Co. in 2002 with respectively 50.1, 34, and 15.9 percent stakes, has worked out right-hand drive vehicles tailored for markets including Southeast Asia, an insider close to the plan said. It is hopeful to create its in Indonesia. The venture is making two brands Chevrolet and Wuling now. It remains pending whether Chevrolet- or Wuling-branded products will be manufactured in the Indonesian plant, the first overseas plant for the venture, the insider disclosed. They are still in hot discussion. Prudent SAIC Motor, however, told journalists in an interview that the plant was not under consideration by its decision-makers yet. In fact, SAIC, one of the nation's top three auto manufacturers, has been longing for a foray into Southeast Asia. That is why it located its mini vehicle venture in Liuzhou, a city in Guangxi and only more than 300 kilometers from the North Bay, close to the border with Vietnam. Top executives of SAIC and SAIC-GM-Wuling have made several surveys on the Southeast Asian markets. Last December, SAIC was reported to make inroads into Vietnam through a joint venture project, which needed an estimated investment of USD 50 million. "It is not time for SAIC-GM-Wuling to export to Vietnam or build a plant in the country," a vice general manger of the venture noted then. Japanese rivals like Toyota and Suzuki have earlier entered Vietnam, with a narrow territory, a slim demand but a high import tariff, he elaborated. Other Chinese automakers have also sought aggressive expansion into Southeast Asia. Chery Automobile Co., Ltd., an independent-branded start-up based in Anhui, central China, drove its strengthen, QQ mini cars, into Singapore in July 2006. A local company Vertex Automobile Pte Ltd. has been set up by Lian Fong Credit for the Chery brand in the island country, and is expected to introduce more models in the future. Recently, Chery Automobile is reported to be in talks with Proton Holdings Bhd to authorize the biggest Malaysian state-run automaker to assemble its two models B14 MPV and T11 SUV in Malaysia for local customers. Proton Holdings is expected to assemble 50 to 60 Chery- branded vehicles during their initial cooperation. Earlier, Chery Automobile has brought Chery A160 since May 2005, and QQ and QQR since July 2006 to Malaysian car lovers by partnering with its Malaysian general agent Alado Corp Sdn Bhd. The Chinese automaker is predicted to sell 2,000 A160s, QQs, QQRs, and B140s in the country in 2007. (USD 1 = CNY 7.77) Copyright 2007 Financial Times Ltd. |