Chrysler planning to set up ASEAN manufacturing base

Amidst our reports filtering in from the 19th International Indonesia Motor Show (IIMS) at the Jakarta International Expo in Kemayoran, Jakarta, some news about Chrysler’s rapidly growing presence in the country and how, spurred by this, it has plans to set up a manufacturing plant in the ASEAN region.

Reports have it that Chrysler Indonesia is set to launch new Chrysler, Jeep and Dodge models at the show, including a Jeep 70th Anniversary edition. PT Garansindo Inter Global, Chrysler’s authorised distributor in the country, will also launch Mopar, which handles accessories and parts designed specifically for the three marques.

Since its reentry into the country a year ago, sales of Chrysler vehicles have been steadily climbing, and the company is expecting to meet its sales target of 700 cars this year. At point of entry last July, six variants from the three brands were slated to be sold in Indonesia, these being the Chrysler 300C and Cabriolet Sebring, the Dodge Journey as well as the Jeep Wrangler Sahara, Wrangler Rubicon and Patriot, all CBU units.

Jeep seems to be doing particularly well – a year on, it has contributed 70% of the company’s total sales, with the Wrangler leading the way for Jeep, with 70% of sales.

The reports add that Garansindo, which currently has five dealers in Jakarta, Surabaya and Bali, is aiming for some serious expansion, targeting to open no less than 23 Chrysler, Jeep and Dodge dealers across the country, including Sumatra, Kalimantan and eastern Indonesia by 2013, and will spend up to US$100 million for expansion.

And with Chrysler already having a sales network in the Philippines, Singapore, Brunei, and Vietnam, the company looks like it’s definitely aiming for bigger, with an eye to assembly and manufacturing in the region.

Chrysler’s Asia Pacific Operations CEO John Kett was quoted as saying that while the company’s focus was to reestablish its presence in the Indonesian market, there were plans for the company to set up a manufacturing plant in Southeast Asia, though it had yet to decide which country it would be built in.

“To develop an industrial base in the region is our priority, but whether it’s in Indonesia (or another country) is a separate discussion,” Kett told reporters. Given the increasing levels of activity happening there, it’s probably safe to assume Indonesia will be it, with the Wrangler being the first to go CKD, joined perhaps by the Patriot.

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