General Motors to close Indonesian plant in June, stop Chevrolet Sonic production in Thailand

GM Thailand SUV production 1

As part of a move to restructure its global operations, General Motors has announced its decision to shut its Bekasi, Indonesia plant by end-June, cutting about 500 jobs in the process, and transition to a national sales company in the republic.

GM will also cease making the Chevrolet Sonic in Thailand by mid-year, and reposition the bowtie brand in some South East Asian markets as an SUV and truck maker. The news comes two years after the company decided to stop its Australian operations – production is slated to cease there in 2017.

Opened in 1995 outside Jakarta, the Bekasi plant produces the Chevrolet Spin for Indonesia and other ASEAN markets, but the seven-seater failed to garner enough sales to justify GM’s continued operation of the plant, which was idle from 2005 to 2013. GM also cites higher material costs and limited access to local parts suppliers.

GM Thailand SUV production 2

GM Indonesia president Michael Dunne is leaving the company end-February, and CFO Pranav Bhatt will serve as interim president until a permanent replacement is named.

As a national sales company, GM Indonesia will continue selling the South Korea-imported Chevrolet Orlando and Thai-imported Captiva and Trailblazer, through its dealer network.

“GM Indonesia is undergoing a market-driven transformation,” said GM international chief Stefan Jacoby. “We know this decision is disappointing for our hardworking employees in Indonesia. We will work with our teams and the local community, along with the Indonesian government, to support our people.”

sonic-1.6

GM has been in Indonesia for eight decades, but its market share is under 1%. It sold fewer than 11,000 vehicles in the republic last year, with Jacoby telling Reuters that the company was going up against the Japanese in their “backyard” and that the Spin was too expensive to make to be profitable in Indonesia.

“We could not ramp up Spin production to boost the volume as we had expected… although the product was really good,” Jacoby told Reuters. “The logistics chain of the Spin was too complex; we had low volume so we could not localize the car accordingly, and from the cost point of view we were just not competitive.”

GM is planning to collaborate with Chinese partner SAIC Motor Corp to manufacture and sell low-cost MPVs in Indonesia. A new, smaller plant near Jakarta will be built for this purpose. This plant will also make vehicles for other selected Asian markets.

chevrolet spin 15

Operations in Thailand will also see a restructuring – the Chevrolet Sonic will stop production at the Rayong, Thailand plant, while the brand seeks to reposition itself as an SUV and truck maker. As such, the company has pulled out from Phase 2 of the Eco Car programme.

The Spin and Sonic will be phased out in the Land of Smiles by June. GM shifted close to 26,000 vehicles last year in Thailand, giving it 3% market share.

“Around the globe, GM is focused on becoming a more customer-focused and operationally efficient company,” said GM South East Asia Operations president Tim Zimmerman. “We must accelerate the transformation of our operations in Southeast Asia, particularly Thailand given the sluggish domestic market demand, by implementing changes to increase customer satisfaction and our competitiveness, speed up all processes, and put us in a better position to achieve future growth.”

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Jonathan James Tan

While most dream of the future, Jonathan Tan dreams of the past, although he's never been there. Fantasises much too often about cruising down Treacher Road (Jalan Sultan Ismail) in a Triumph Stag that actually works, and hopes this stint here will snap him back to present reality.

 

Comments

  • Head Unit Worst than China Made on Feb 27, 2015 at 6:42 pm

    better dont buy chevy then

    Like or Dislike: Thumb up 13 Thumb down 12
    • Message to the BODOH MAI on Feb 28, 2015 at 12:08 pm

      This is an example of how, our existing car companies will close shop in Malaysia and move away. They are getting fed up with the crony practices of MITI and MAI. They are getting fed up with how MITI controls all their car prices and forces them to prices at least 20k above Proton.

      Like or Dislike: Thumb up 13 Thumb down 21
      • Johan on Mar 01, 2015 at 8:07 am

        did you read the article? clearly stated GM shut down operation in Thailand, nothing to do in malaysia.

        Like or Dislike: Thumb up 12 Thumb down 5
  • kzm (Member) on Feb 27, 2015 at 6:54 pm

    Ouch!

    Like or Dislike: Thumb up 7 Thumb down 2
  • cendol (Member) on Feb 27, 2015 at 8:09 pm

    When is Proton’s turn?

    Like or Dislike: Thumb up 35 Thumb down 43
  • Spinning Politicians (BN & PR) on Feb 27, 2015 at 8:24 pm

    Chevvy Spin ka Chevvy Capybara?

    Like or Dislike: Thumb up 4 Thumb down 2
  • Don Juan De Marco on Feb 27, 2015 at 8:28 pm

    For S.E.A market, GM should replace Chevy altogether with the Opel brand which has better-designed cars (normal passenger cars) compared to Chevy. Opel has the potential to be one of the best Europe mainstream car brand in this region alongside VW & Ford. GM can bring in the Chevy sportscars or SUVs, just leave the Chevy sedans/hatchbacks to the US market..

    Like or Dislike: Thumb up 20 Thumb down 4
    • alldisc on Feb 28, 2015 at 11:18 am

      Opel is a brand that proven to be unpopular with Malaysians. This happened in the late 90s and early to mid 2000.

      Opel Nabira was best seller, I think. Not the Astra. Or Omega. Other models did not even reach our shores.

      GM need to rebrand the image.
      Perhaps use Vauxhall name plate, a brand that was once known in Malaysia some 30-40 years ago.

      Then bring in astra VXR, insignia, hybrid ampera/volt and other models suitable to the market. Like what Ford, renault, peugoet and citroen did.

      Like or Dislike: Thumb up 6 Thumb down 3
      • Don Juan De Marco on Feb 28, 2015 at 10:28 pm

        Rebrand Opel to Vauxhall for Malaysian market? Are you joking Alldisc? Vauxhall is a Britain-only brand, outside those countries, nobody really cares. And in the late 90s not many Europe brand (other than Merc & BMW) could gain a strong foothold in Malaysian, not just Opel..

        Like or Dislike: Thumb up 4 Thumb down 4
        • alldisc on Mar 02, 2015 at 9:28 am

          never try, never know.

          Malaysia did have Vauxhall models several decades ago. during which time i think u were not born yet.

          Like or Dislike: Thumb up 1 Thumb down 0
    • lowprofile (Member) on Mar 02, 2015 at 10:38 am

      I’m guessing that one reason why Opel was replaced over here was that the exchange rate hurt Opel too much at that point in time. At that time, there was ongoing work with then Daewoo, (now fully absorbed into GM as Chevrolet Korea) to provide cars for this region at a lower price. Therefore, Chevrolet branding was selected so as to protect Opel and to mitigate the higher cost of the Euro. It was also to give Chevrolet a mass market opening into this region while keeping Opel at a higher positioning. Opel won’t work here already being at roughly the same price as VW. To work well here, Chevrolet needs faster model change cycles. They need to have up to date technology and specifications. Even though Malaysia is in ASEAN, that doesn’t mean that Malaysians don’t know what goes on in Europe and elsewhere. We have a high literacy rate and we do read motoring reports from all over the world. GM needs to understand that and not lump us with other developing countries. Yes the low fuel quality could be a concern but there are ways to mitigate this factor. Only by properly understanding this market can they do well and not see the region as a whole. Yes, by all means, bring in a RHD, 2.0 Turbo Camaro for this region (hasten its development if it is not in the programme). Ford is bringing in its hero the Mustang. Chevrolet needs a brand hero too. But it must be suited to our country. There are lots that Chevrolet can do to build up its presence here. Good design for instance. Just compare the US only Colorado and the worldwide Colorado that we get. Which looks more American? How about the Spin? Yes, Spinning Politicians is right in saying the Capybara. In South America it has such a nickname… and it is not positive. Australia, Korea and elsewhere has the Sonic Turbo. Good little car to fight in B-segment? Or re-badge an Opel Corsa OPC but prices need to be realistic and in tandem with brand image. And can the Malibu 2.0 Turbo sold exclusively in the US be available worldwide? This might help in countries which frown on big engines. So, many questions need to be answered before the brand can really take off here. By the way, Vauxhall was sold here long ago. I know as my dad had one but it might not work today. And, it would probably cost too much to rebrand all the existing outlets anyway. Just my 2 cents worth.

      Like or Dislike: Thumb up 0 Thumb down 0
      • Don Juan De Marco on Mar 02, 2015 at 2:17 pm

        But selling Chevy-branded cars small/entry level does’nt look feasible in this region as can be seen for the past 10-15 years or so(apart from the dull-looking designs from Chevy Korea). Chevy is always associated with big saloons,sportscars or SUVs/Pick-ups. Opel/Vauxhall nameplate on the other hand is historically more popular in the small to medium-sized cars, just like what most European mainstream marques.This is their forte.And now with the steady growth enjoyed by many of those marques in this region, why not consider Opel? The idea of affordable German branded cars is also still sound tempting for many of the car buyers in this region. Unless GM is still stubborn with their current plan..

        Like or Dislike: Thumb up 0 Thumb down 0
        • lowprofile (Member) on Mar 02, 2015 at 2:51 pm

          I think your last sentence nailed it… unless of course, the change in direction is genuine. But to have ‘Opel’ made affordable would be very difficult considering how small our ringgit is getting these days compared to other major currencies.

          Like or Dislike: Thumb up 0 Thumb down 0
  • Really on Feb 27, 2015 at 9:59 pm

    The most numerous Chevy i usually seen on the road are the Colorado. Considered lucky if can see the Sonic. Extremely lucky if can see the Malibu. I am from the East Malaysia though. Maybe the Chevrolet brand is more popular in the Peninsular.

    Like or Dislike: Thumb up 11 Thumb down 2
    • Visitor on Mar 01, 2015 at 7:03 pm

      Chevy Colorado is quite a common sight in East Malaysia.

      Like or Dislike: Thumb up 0 Thumb down 1
    • RavenAii (Member) on Mar 01, 2015 at 7:54 pm

      Seen a lot of Colorado, some Orlando and Cruze, less Sonic and seriously one Captiva and never seen a Malibu on the road. I’m from East Malaysia too and the most common vehicle I’ve seen on the roads are pickup trucks and people carrier.

      Like or Dislike: Thumb up 0 Thumb down 1
  • Where are all the haters and bashers who claimed that manufacturers are moving to indon?

    Like or Dislike: Thumb up 28 Thumb down 16
    • Dude read the post properly.

      GM is planning to collaborate with Chinese partner SAIC Motor Corp to manufacture and sell low-cost MPVs in Indonesia. A new, smaller plant near Jakarta will be built for this purpose. This plant will also make vehicles for other selected Asian markets.

      The are selling off the current plant to another national sales company and building a new plant catered to making SUV and MPV.

      So GM is still in Indon and has not moved out man. Look at WV and they just invested to build a new plant in Thailand so one day they might leave the CKD operations here in Malaysia and move to Thailand due to poor sales here.

      Like or Dislike: Thumb up 7 Thumb down 5
      • charles on Sep 04, 2015 at 8:01 pm

        GM needs to understand the markets prior to launching any new Model.No real ground work,too much tuned to assumptions this is the root cause of their failure.

        Like or Dislike: Thumb up 0 Thumb down 0
    • ProtonGSC on Feb 28, 2015 at 11:09 am

      Since Indonesia corporate with Bolehland. GM choose to shut down… corruption will be out of hand and industry will suffer.

      Don’t believe? wait till the day come… hope you’re not one of the millions victim that suffer.

      Like or Dislike: Thumb up 10 Thumb down 20
    • AP PEKEMA PENIPU on Feb 28, 2015 at 11:29 am

      Soon the existing companies CKDing in Malaysia also might close shop because they cannot get APs to bring their legitimate brands like Honda, Toyota, MB and BMW in.

      The big players have to share AP with the 30 PEKEMA thieves. You may say there are different APs like Open APs and all that nonsense but, they all have to share in one pie.

      Also, GLC players like Sime Darby get more APs for their BMWs than MBM because of crony practice.

      Infact, it won’t be long before our big players close shop and open in Thailand where there is a fair system and no need to support the 30 AP PEKEMA thieves.

      Like or Dislike: Thumb up 16 Thumb down 9
      • kzm (Member) on Feb 28, 2015 at 4:12 pm

        u know that best selling toyota, honda, nissan is CKDed car? those CKD does not need any APs as AP is oni for imported car. Even Merc high selling car is oso CKD..those PEKEMA deal with gray import or unofficial import..those APs use by PEKEMA is oni 10% of total market.

        Like or Dislike: Thumb up 9 Thumb down 1
  • Josh Ling on Feb 28, 2015 at 12:15 am

    GM is not putting enough effort in SEA market. they thought they could win over the market with all those stone-age cars with new looks (sonic, captiva, and to some extent cruze), confusing naming tactics (colorado, even till today i still don’t know how to call the ‘new’ colorado in full). throw in some mediocre after-sales service, hard to find spare parts, i can only wonder why this restructuring only happens now. and I can’t see any improvement after this, unless they start to treat SEA market like how other car makers do.

    Like or Dislike: Thumb up 20 Thumb down 1
    • You mean, you are unable to pronounce colorado?

      Like or Dislike: Thumb up 3 Thumb down 0
    • anonymous on Mar 01, 2015 at 12:45 pm

      Toyota is winning market with stone-age car with new looks. (think Vios)

      Like or Dislike: Thumb up 2 Thumb down 2
      • alldisc on Mar 02, 2015 at 9:32 am

        they are selling more vios after the raining roof noise problem was solved (due to bulging roof design similar to Prius cars – which had better soundproofing).

        Like or Dislike: Thumb up 0 Thumb down 0
      • lowprofile (Member) on Mar 02, 2015 at 2:28 pm

        Toyota can do that because they are an established brand. Not possible for new brands that want to penetrate a market to do that. New brands must have features that make them sought after and special to be considered as potentials in a buyers mind.

        Like or Dislike: Thumb up 0 Thumb down 0
  • Semi-Value (Member) on Feb 28, 2015 at 2:22 am

    kind of expected when the chevrolet are nothing but subpar daewoo’s

    Like or Dislike: Thumb up 6 Thumb down 4
  • Som Laa on Feb 28, 2015 at 6:20 am

    GM is making money in Indonesia via its joint-owned Wuling. Cheap and cheerful minivan is what the market needs.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Sam Loo (ori1) on Feb 28, 2015 at 9:34 am

    All these sui kwan cars should not be sold at all

    Like or Dislike: Thumb up 13 Thumb down 9
    • anonymous on Mar 01, 2015 at 12:46 pm

      Sell also Nobody buy. Hardly see any Chevrolet Sonic on road. Almost NONE.

      Like or Dislike: Thumb up 2 Thumb down 0
  • Neo R on Feb 28, 2015 at 10:03 am

    This is the problem if you don’t have your own car brands and RnD. The assembly companies just pull the plug leave you nothing behind.
    Where are those stupid who like to bashed Proton, they must be these foreign car companies agents, like to see local brand not progressing so they could milking Malaysia dry and sky roof their car price.

    Like or Dislike: Thumb up 20 Thumb down 3
  • mastermind on Feb 28, 2015 at 11:19 am

    Chevy no sales ‘cabut lari’
    Proton no sales …more discount…
    Better proton than GM…..hahaha…
    After this…..VOlkswagen..too to cabut lari….

    Like or Dislike: Thumb up 20 Thumb down 5
  • Painter on Feb 28, 2015 at 11:24 am

    Asean countries must come together as a single entity. No point competing with each other.

    Like or Dislike: Thumb up 4 Thumb down 2
  • Hi…I did own one of the chevy car for 5+ years. No major problems…even to get a spare part. The things is, if one SC said not avail I ask another SC. All spare part I need, I got immediately even door handle up to windshield glass. But it look like the SC not ask another SC or they don’t have centralized info of what spare parts avail. Yes GM should improve on spare parts issue.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Not supraising on thier market share. Look at their cars. Goodness me….American cars are generally pretty ugly.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Now Chevy nampeplate really a backfired in Malaysia. If I were in the market for the SUT or ute, hardly I’ll considering unless they’ll bring GMC CANYON instead of least fancy nampelate CHEVY COLORADO. Both GM brands has similar size with unique characteristics. Of GM dare to challenge the status quo since the Chevrolet nameplate is unsuccessful one a GMC with 2.8 Duramax mill easily win skeptical Colorado fans.

    Handsome look is something missing in Chevy truck as well as Daewoo reskinned Chevrolet .

    Like or Dislike: Thumb up 5 Thumb down 0
  • Wheeltyre on Mar 01, 2015 at 2:29 am

    Tahniah to Dr. M. selaku Malaysia automotive industry. Others companies tak laku cabut lari.

    Like or Dislike: Thumb up 6 Thumb down 4
  • anonymous on Mar 01, 2015 at 12:43 pm

    GM car is worst than proton! IF a Chevrolet sonic sell same price as Iriz also no people will buy it!

    Like or Dislike: Thumb up 2 Thumb down 0
  • Sam Loo (ori1) on Mar 02, 2015 at 8:06 am

    But seriously, it would be a great financial loss to me if Hyundai Malaysia tapau.

    I need a constant stream of used 18 month old kimchis being traded in at such low prices that will make the faces of the sorhai owners unrecognisable by their mothers when they are being shown the Hilux

    Like or Dislike: Thumb up 1 Thumb down 2
  • kolejeon on Mar 02, 2015 at 8:25 am

    GM cars for asean market are mostly ugly. Not appealing.

    Like or Dislike: Thumb up 2 Thumb down 0
  • PeterGriffin on Mar 02, 2015 at 8:43 am

    So General Motors had been in Indonesia for 80 years?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Pondan on Mar 02, 2015 at 9:37 am

    In biz world, when there’s no biz sense to run an outdated model, the company will change and take actions.

    Proton has been money loosing for years and yet still behave the same. Cry baby and asking for more milk.

    In the end, proton won, cronies win, gov win, rakyat fails.

    Like or Dislike: Thumb up 0 Thumb down 0
  • I will always maintain that GM dropped the ball in managing this region..Instead of trying to push Chevy for the last 15 odd years, they should have leveraged on their Opel nameplate as many in this region love the idea of a ‘German’ quality car and engineering at mass market prices and willing to put up with hurdles (VW aftersales in general) to own that idea

    Even if they could not get all the Vauxhall/Opel line up, they could have mixed with some ‘region’ specific GM Korea based models that carry the ‘Opel’ name.. pricing it around Ford and VW money..GM could have had a decent if not stellar sales in this region compared to the white elephant nature of Chevy cars here… the market is crying out for an affordable ‘German’ car… and clever marketing is all that’s needed..

    I dont buy that such a move cannot be done..GM is a huge manufacturer and these factories can be retooled within a year and all those models mentioned are engineered out of the box with RHD markets in mind due to to Vauxhall..i reckon it’s the biggest miss for GM in this region..

    Like or Dislike: Thumb up 0 Thumb down 0
  • chandra manik on Aug 09, 2015 at 6:32 pm

    Well, GM has shutdown its plant in Bekasi, a satellite city of Jakarta. Altough spin and captiva and orlando are are the famous model in Indonesia but GM may not able to gain market shareshare as they planned. In other hamd, mitsubishi build 120 hectares plant in Delta mas industrial area not to far from Bekasi. Well I am sad to see GM leaving the country but at least MMitsubishi comes back with a bigger plant.

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required