• May 25, 2006

An Indonesian newspaper is reporting that one of the two US auto companies is poking around the Southeast Asian country for a new assembly location. The mystery automaker is said to be interested in dropping somewhere in the neighborhood of $1.4 billion to develop a plant capable of producing 200,000 sedans per year.

Combine this report with the news that General Motors is looking to assemble its new sub-Theta compact crossover vehicle in a "leading cost country", and perhaps it's possible that GM wants to build cute-utes in Indonesia.

[Source: Reuters]

 



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    • 1 Second Ago
  • 9 Comments
      • 8 Years Ago
      Err in response to Mal Fuller...
      Why don't you do the math on what 200,000 vehicles a year would cost if each vehicle was $15,000?

      Actually, let me do it for you:
      200,000*$15,000=$30 billion
      Spending $1.4 billion dollars to build a plant that can turn out $30 billion dollars of cars each year (and presumably the plant would stick around many years) is not bad financial sense at all.

      Building cars that can sell in huge volume isn't a cheap game, did you think those plants could be built for just millions?
      • 8 Years Ago
      tekdemon,

      You might want to use a calculator next time. You've got an extra zero in the result.

      An assembly plant to build 200,000 cars wouldn't cost this much. But they might also be planning an engine, transmission, and/or stamping plant. They might also be including room for expansion. Lots of variables.

      GM had a plant in Indonesia until the mid-1990s. The critical issue is political stability and corruption.
      • 8 Years Ago
      So where are all the buy American folks now?
      • 8 Years Ago
      GM and Ford are secretly building up enough capacity overseas.
      In a few years, GM and Ford will simultaneously fire all UAW workers, taking no profit and productivity losses by rapidly shifting production overseas.
      With the UAW hurdle cleared, GM and Ford can restart the American manufacturing industry from scratch, without the decades-old burdens.
      This is the ultimate rejuvenation plan.
      • 8 Years Ago
      No surprise here. World's 4th largest population (just behind the US) and easy access to international shipping makes it the next cheap-labor greenfield.
      • 8 Years Ago
      Buy an American car.......from Indonesia? Is that really an American car?

      Is Indonesia really 4th in the world in population? That seems impossible.
      • 8 Years Ago
      Really? $1,400,000,000.00 (1.4 billion dollars) so this mystery US carmaker can produce 200,000 vehicles? American Motors built that many cars in a very bad year in their old Kenosha lakeside plant!
      It's got to be GM. That's because the evidence is mounting that their white collar payroll cuts have left them with only a few remaining dimwitted accountants. Why else would you spend this much money for such a meager production capacity?
      • 1 Year Ago
      [blocked]
      • 8 Years Ago
      Yeah, that sounds brilliant John. Turn down the Rush Limbaugh, I can barely hear you.

      So let me get this straight - the "ultimate" way to "rejuvenate" the American auto industry is for it to stop employing Americans? Once all our manufacturing jobs are being done overseas then somehow American manufacturing will really take off?

      I give up - where'd you get your PhD?