Mitsubishi Motors to invest US$600 million to build new plant in Indonesia – new MPV set to be developed

delica

Mitsubishi Motors has announced that will be investing US$600 million to build a new assembly plant in Indonesia. The spend will also involve the development of a new vehicle for the market, according to a report by Reuters.

The new plant, which will be located at an industrial park east of Jakarta, will have an annual production capacity of 160,000 vehicles, with the possibility of expanding this to 240,000 units in the future.

Production is set to begin in the first half of 2017, the company’s chief executive officer Osamu Masuko told the news agency. The plant will build two commercial vehicles as well as a new eight-seater MPV. Around US$250 million of the company’s US$600 million investment will be assigned for the development of the new vehicle.

delica 1

No mention was made as to the model that will be developed, but speculation is that it will be a lower-segment MPV competing with the likes of the Toyota Avanza and Honda Mobilio. The company launched the fifth-gen Delica D:5 in CBU form last week at the ongoing IIMS 2014 in Jakarta, but the new development is unlikely to be along those lines.

The automaker is planning to build 80,000 units of the new MPV annually, and export 20,000 to countries around the region, including Thailand and the Philippines, the report adds.

The company currently has a production plant in the country, but that one builds commercial vehicles, and is looking at the introduction of the new factory to expand its market share in the republic from eight percent currently to around 13%. The new facility will make Indonesia the automaker’s second largest ASEAN production base after Thailand.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Semi-Value (Member) on Sep 22, 2014 at 1:30 pm

    delica 4×4….remember the good old days when i travel in karak forests using that beast

    Like or Dislike: Thumb up 19 Thumb down 1
    • Sammy Valley on Sep 22, 2014 at 2:36 pm

      Beribu ribu tahniah to Dr M the father of Indonesian automotive industry!!

      Like or Dislike: Thumb up 38 Thumb down 3
      • kairul abdul on Sep 22, 2014 at 2:56 pm

        Tun DrM “we want to make different from others”

        Even the corruption indu country people still choice there why?
        Because they knew bolehland are even worst then that.
        Face the fact P1 fansboy.

        Like or Dislike: Thumb up 23 Thumb down 0
      • Bogus MAI on Sep 22, 2014 at 3:19 pm

        Yet another blunder by the idiots at MAI. Not only have we lost billions, every year, we keep on losing billions in investments. RM2 billion just lost like that and maybe about 30,000 jobs also lost just from one company alone, Mitsubishi

        Car companies do not want to invest in Malaysia anymore because they are fed up of the crony AP system which is strongly supported by MAI and its CEO, Madani Sahari.

        Madani Sahari is a shameless man. He is used by the government to confuse the people with heavy duty analysis and charts. He has no dignity. Malaysians not interested in the 1% to 3% and all that. We want the below 3 issues looked into. After all we are paying 3x the car prices compared to world prices for the same car. And all this is caused by the AP cronies in Malaysia.

        Why no action on the AP boys who are minting billions at the expense of the 30 million Malaysians suffering with high car prices?

        Madani got no telur to tackle. The MAI guys are paid very high pay to confuse the rakyat with all sorts of analysis and charts but the AP system as well as crony practice, they don’t bother.

        Our hard earned money is spent to support the fools at MAI. But no result. The last big paper/NAP they were to scared to touch on the AP Kings. Kenapa takut? The AP Kings are the main cause car prices in Malaysia is so expensive and collapse of our potential trillion dollar car industry.

        Please Madanai and MAI, have some guts to serve the people of Malaysia and not just your own pockets.

        MAI love Come out with analysis and charts, but nothing will be done. Remember MAI is the Government and the Government is MAI. So, it is a drama for the rakyat.

        It is solely because of Mahathir and his AP kawan kawan, as well as inaction by Bogus MAI that for 30 years, 30 million people in Malaysia suffer. Everybody’s biggest payment per month is their cars as we are paying overpriced cars.

        You see, in the 80s or even in the early 90s, you can get a brand new Nissan 130Y or a Toyota Corolla for RM20,000. Now, the same car is RM139,000.

        In truth, the past 30 years, car prices have come down a lot globally and have NOT gone up due to inflation. It has come down due to economies of scale achieved by car companies. This is proven by the fact that you can get a brand new purely Japan made top spec Toyota Camry 2.5 with 9 airbags in the US for US$22,000. That is about RM60,000. The normal B segment car like the Almera is sold in the US for US$9,999. (RM30,000). Mind you, this is after Toyota and Nissan of the US has made their margin and profits and the US government has collected taxes and duties from Nissan and Toyota. The direct from factory prices is far cheaper. UMW will get the above 2.5 Camry for US$15,000 from their principal in Japan. As our Camry is CKD, the price is even lower than that.

        So, in actual fact, most Malaysians can enjoy cheap and reasonable cars but because of the AP failure, all the other car prices have been raised up tremendously to protect Proton, Mahathir’s AP cronies and the fat cats at Bogus MAI. Malaysians have already suffered so much. For 30 years, 30 million people suffer so much. We struggle paying for our high car prices all because of one man’s dream of benefiting his friends and relatives through the AP system. and the inaction by Bogus MAI

        The AP system as well as inaction by bogus MAI, it has also cost us hundreds of billions in ringgit in investments from car companies who moved to Thailand and Indonesia. Car companies got fed up with Malaysia’s MITI for protecting Proton and telling other companies what to price their cars. They got sick and tired of the AP system and how genuine brands cannot get enough APs to import their cars in (like Mercedes, BMW and Honda).

        They thought that if they set up their brands and plants in Malaysia, they knew they had to share the pool of APs with the cronies and they knew 90% of all APs go to the cronies. They all moved their operations to Thailand making it the AutoCity of the world.

        Recently GM announced that they rolled out already 1 million cars from Thailand. Imagine if GM was in Malaysia and we taxed GM RM10,000 per car. Calculate that with 1 million cars. Just from GM alone, we lost Billions in USD. Imagine what will the amount be from other car companies if they had set up in Malaysia?

        Because of Mahathir and his AP system as well as inaction by Bogus MAI, we lost hundreds of billion of ringgit in investment and trillions of ringgit from jobs lost. If Malaysia was the autocity of Asia, hundreds of thousands of jobs would have been created for Malaysians. We lost all that. Trillions of Ringgit and hundreds of thousands of jobs. Now, Thailand is benefiting from this trillions lost.

        So, in summary, the 30 PEKEMA members have solely caused Malaysia to lose trillions in investments. What have they done? Nothing.
        The AP companies also don’t employ many people.

        Yes you read it clearly. Only about 10 people working. That includes the 4 Bangladeshi guys whose job is to wash the cars.

        Go around KL and Jalan Genting Klang and see, all the AP cronies have hardly 10 people working for them each (including non bumi boss, non bumi salesman and secretary).

        Remember one thing, other than Naza, each AP company have hardly 10 people working. So, if you do the maths, about 30 AP companies x 10 people = 300 people. Majority of which (98%) are non bumi. Defeats the whole purpose of the AP system to help the Bumiputera to venture into the car business.

        Madani is protecting 300 people vs 30 million Malaysians suffer?

        No need to wait end of this year. Look at this as a crime. Abolish it today itself. Abolish the AP system now Madani. It is causing too much hardships on the 30 million Malaysians!

        Today is another example of how we just lost US600 million (RM2 billion). We also lost about 30,000 jobs that Mitsubishi would employ. Maybe about RM10 billion lost in pay packet alone in the next few years.

        Like or Dislike: Thumb up 47 Thumb down 2
        • Madani Sahari on Sep 22, 2014 at 3:38 pm

          Jangan kutuk saya dan MAI. Saya tunggu Datukship ni. Lepas saya jadi Datuk, baru saya akan mengambil tindakan terhadap budak budak AP ni

          Like or Dislike: Thumb up 9 Thumb down 3
          • Semi-Value (Member) on Sep 22, 2014 at 11:11 pm

            thats why u no power…ppl nowadays aim for tan sri…datuk whole street also ada

            Like or Dislike: Thumb up 2 Thumb down 0
        • Goodbye CKD and Goodbye FDI on Sep 22, 2014 at 4:00 pm

          Very soon, existing plants in Malaysia also will close shop. Mat Salleh will not hesitate to close their plants if got other place cheaper to CKD and less politikus.

          In 20 years time, you will see NO car CKD in Malaysia. Even Toyota and Honda also will say goodbye to the UMW and DRB partners and set up fully in Thailand or Indonesia.

          This is already happening in all industries not just car industry. From electronics to food, all closing their Malaysia factories and moving to Vietnam, China, Indonesia and Thailand.

          Look at Panasonic, once made Malaysia the No 1 Aircon producer, now, all their aircons are Made in China.

          Like or Dislike: Thumb up 19 Thumb down 0
        • kzm (Member) on Sep 22, 2014 at 4:52 pm

          well bolehland not enough bribing car maker to open plant here..

          Like or Dislike: Thumb up 1 Thumb down 7
    • semak samun on Sep 23, 2014 at 12:25 pm

      tanniah bolehland..
      “Proton akan mengeluarkan model terbaru bagi bersaing dengan jenama lain”- Dr Mahathir

      Like or Dislike: Thumb up 0 Thumb down 0
  • Cool! another multi millions investments but too bad not in Malaysia…

    Like or Dislike: Thumb up 15 Thumb down 2
  • spongewai on Sep 22, 2014 at 1:45 pm

    Indonesia and Thai have many plants there, where is plant in our Malaysia except Honda plant in Melaka?!

    Like or Dislike: Thumb up 14 Thumb down 1
    • labix7 on Sep 22, 2014 at 2:10 pm

      car manufacturer looking for cheaper labour cost + cheaper cost of living + better tax structure. They can build the plant here, but still need to import more workers from indonesia or other asean region. So better setup a plant over there la.

      Like or Dislike: Thumb up 14 Thumb down 3
    • kzm (Member) on Sep 22, 2014 at 2:38 pm

      I don’t know why u guy want auto plant in boleh when at same time don’t want to buy CKD or assemble car here? eg say quality prob la, crony la, CBU better la, high keras import, worker lazy etc.

      Like or Dislike: Thumb up 20 Thumb down 11
      • Chia SK on Sep 22, 2014 at 3:21 pm

        Only fools like you think that way. We all support CKD. Just because you got easy life and everything fall from trees for you, you cannot understand a lot of things. Semua free kan bang?

        Like or Dislike: Thumb up 9 Thumb down 14
        • kzm (Member) on Sep 22, 2014 at 3:55 pm

          I’m all support for local production but many paultan commenter don’t like it..almost all ckd model are being n ridicule..

          Like or Dislike: Thumb up 11 Thumb down 3
          • Md Shah on Sep 22, 2014 at 4:10 pm

            Nobody ridicules CKD. Maybe you do and you say others do. Kzm, pls don’t talk rubbish as usual. You are the only one who talk rubbish.

            Like or Dislike: Thumb up 4 Thumb down 6
          • kzm (Member) on Sep 22, 2014 at 4:32 pm

            better u read all article bout CKD car production in paultan.

            Like or Dislike: Thumb up 1 Thumb down 4
        • Obviously (Member) on Sep 22, 2014 at 4:38 pm

          If given a choice between CKD and CBU, quite a lot of people would opt for CBU. Seen and heard enough to know that. There’s that preconception that locally made products are inferior in quality. Sometimes it’s true, sometimes it’s just prejudice.

          Like or Dislike: Thumb up 9 Thumb down 0
      • kzm budak bangau on Sep 22, 2014 at 4:14 pm

        kzm one stupid guy lah. From last year racist comments to this year’s no logic comments. What is in your head bro?

        Like or Dislike: Thumb up 6 Thumb down 5
  • There it goes another opportunity…
    Nobody wants to open new plant in Malaysia…

    Like or Dislike: Thumb up 14 Thumb down 4
  • Henry on Sep 22, 2014 at 1:51 pm

    There is such a thing called choice. Our loss is Indonesia’s gain.

    Like or Dislike: Thumb up 13 Thumb down 0
  • Phantomworks on Sep 22, 2014 at 1:54 pm

    congrats Indonesia …..you should thank Tun m, Malaysia gomen and Proton for your success…..there go our FDI.and job oppurtunity…..

    Like or Dislike: Thumb up 19 Thumb down 5
  • Car-Fans on Sep 22, 2014 at 1:56 pm

    Gone again … Ppl investing in Indonesia (for Asia) … If only in Msia … then more our ppl get some job.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Motorhead (Member) on Sep 22, 2014 at 2:00 pm

    Butthurt mentality. .

    Daihatsu open factory in Indonesia. . Want to kill Perodua. .

    Mitsubishi also open.. may be want to kill Proton… because can’t export Inspira to Indonesia. .

    Hahaha. ..

    Like or Dislike: Thumb up 7 Thumb down 4
    • peyno (Member) on Sep 22, 2014 at 3:41 pm

      mitsubishi=proton??

      old minded old man with old modal kutuk

      Like or Dislike: Thumb up 3 Thumb down 7
      • Motorhead (Member) on Sep 22, 2014 at 7:34 pm

        Oh.. you will be remembered forever for your stupidity. .

        Daihatsu in Indon want to kill Perodua. ..

        Perodua copy indon.. etc etc…

        Best.. Quality is subjective. .. no wonder plotong flop…

        Bodolegend…

        Hahaha. ..

        Like or Dislike: Thumb up 0 Thumb down 3
  • mujinkun (Member) on Sep 22, 2014 at 2:20 pm

    There goes again with FDI in Malaysia.

    What our Finance Minister do right now, never heard of any FDI this year from Automotive sector, what a waste..

    Haishhh

    Like or Dislike: Thumb up 9 Thumb down 0
  • NormanTheGreat (Member) on Sep 22, 2014 at 2:21 pm

    Not another 1.5 NA MPV again..Pls put an option of turbocharged 1.5 MPV with 130hp/220nm..

    Like or Dislike: Thumb up 1 Thumb down 0
    • Twoinch on Sep 22, 2014 at 5:38 pm

      I guess you are just 2″ and never seen or heard what vehicle is Delica :lol:

      Like or Dislike: Thumb up 0 Thumb down 0
  • Wow. A lot of idiots in the Paul Tan comments sections. No surprises there. Never occurred to them that we are a middle-income economy unlike Indonesia.
    Even if Mitsu opens up a plant in Malaysia, it will either pay below minimum wage salaries to our citizens or import more indons or banglas to work in the factory, as pointed out by the gentleman above.
    This is why Malaysia will never escape the middle-income trap! Idiots clamoring for foreign companies to open low paying factories that does not benefit us in the long run.

    Like or Dislike: Thumb up 4 Thumb down 15
    • Chia SK on Sep 22, 2014 at 3:43 pm

      small time idiot. Studied Economics in A levels and tries to talk like he knows it all and is a big economist. Talk rubbish only.

      Like or Dislike: Thumb up 11 Thumb down 3
      • youstpdass on Sep 22, 2014 at 8:13 pm

        Then what’s your view? Dun just talk kok sing song kutuk bash crap here. You dun give anything, GTFO!!!

        Like or Dislike: Thumb up 1 Thumb down 1
  • hadi75 on Sep 22, 2014 at 3:29 pm

    That delica looks way better than toyota innova…..

    Like or Dislike: Thumb up 2 Thumb down 2
  • NormanTheGreat (Member) on Sep 22, 2014 at 3:49 pm

    Now understand why Toyota,BMW,Benz,BMW etc set up plants in China?

    Like or Dislike: Thumb up 0 Thumb down 0
  • peyno (Member) on Sep 22, 2014 at 4:05 pm

    yeass without 2nd national car perodua daihatsu may invest here more as what they did in indonesia

    infact we may get cheaper real daihatsu indone made rather that lousy crony BN p2 national car

    Like or Dislike: Thumb up 2 Thumb down 0
  • kenot on Sep 22, 2014 at 4:21 pm

    Maybe the cost to setup new plant in Malaysia is twice than Indonesia/Thai. And it is not include labour cost to operate the plant.

    just my 2 cents.

    Like or Dislike: Thumb up 0 Thumb down 3
  • suararakyat on Sep 22, 2014 at 6:28 pm

    You all malaysian want foreigh investment change the government to pakatan rakyat for sure I guarenty many foreght company will come to malaysia. Its your choice the rakyat just think.

    Like or Dislike: Thumb up 1 Thumb down 1
  • ApaMacam on Sep 22, 2014 at 6:38 pm

    What a sad case to see all neighbour grow in auto industry n we keep on dropping n losing all the way n yet we Rakyat keep on bleeding on & on with no ending ………..

    Like or Dislike: Thumb up 3 Thumb down 0
  • Diesel Power!!! on Sep 22, 2014 at 7:00 pm

    Some experts here said we wont gain anything though cars company ckds their car here bcoz employ foreign workers,bla bla bla..

    To the so called expert, plz analyse more deeply on how it will affect our country as a whole…eventhough they employ foreigner, this ppl will spend their money here for essential things, food, etc, and we also earn taxes from this company..And they still need to employ local for high skill jobs, such as management, administrative, executives and so on..i think, at the end, we still earn more…

    Like or Dislike: Thumb up 4 Thumb down 0
    • guess on Sep 22, 2014 at 8:18 pm

      We do earn, TEMPORARILY. Now we see ady they move out slowly.

      Like or Dislike: Thumb up 0 Thumb down 1
  • Diesel Power!!! on Sep 22, 2014 at 7:03 pm

    I think the most serious problem affecting us is , the people really cant differentiate rights & wrongs, logic or illogical thing…only think about ego…shiok sendiri ego!!! Watever things also can give excuse!! sigh…

    Like or Dislike: Thumb up 6 Thumb down 0
  • Motorhead (Member) on Sep 22, 2014 at 7:42 pm

    There goes all the FDI… yep folk… let’s liberate auto industry. .

    When we sick.. we need to get rid the diseases. . The parasite.. the company that keep asking gov money. .. kill it.. let see what happens. ..

    Don’t worry about P2. . Profit making.. under Toyota group.. she can survive with local company incentives. . There are a lot of incentives that you do not know.

    Not even here.. in Paultan.

    Like or Dislike: Thumb up 2 Thumb down 1
    • peyno (Member) on Sep 23, 2014 at 6:26 am

      yet daihatsu still choose indonesia for their small car hub in asean?? why??? ofciz indonesia profit better… malaysia never make pofit since wstablishes ( pls reder to p2 accounting ) they knpw better about p2

      daihatsu smart oredi

      Like or Dislike: Thumb up 0 Thumb down 0
  • areos on Sep 23, 2014 at 9:46 am

    Indonesia or Thailand are the natural choice for car makers even..if our tax regime and incentives on par..its because..(i) abundant labour (ii) you pay only a third of labour cost there compare to bolehland (iii) both countries have much bigger population and market (250 mil in Indonesia, 80 mil in Thailand) (iv) workers skill higher and level of technology one step higher (v) workers there are not fussy like here (too demanding) (vi) endurance – workers there can work from 7 to 7 with no extra cost….cost of living there for three months equivalent to one month here… (vii) easier for companies to make money (good or bad) there rather than here…

    Like or Dislike: Thumb up 0 Thumb down 0
 

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