Top Page | English | 简体中文 | 繁體中文 | 한국어 | 日本語
Thursday, 13 October 2016, 17:06 HKT/SGT
Share:
    

Source: Mitsubishi Corporation
Restructuring of Automotive Production and Distribution Business in Indonesia

TOKYO, Oct 13, 2016 - (JCN Newswire) - Mitsubishi Corporation (MC) has reached an agreement with partners Mitsubishi Motors Corporation (MMC), Mitsubishi Fuso Truck & Bus Corporation (MFTBC), and Indonesia's PT Krama Yudha (KY) regarding the restructuring of their automotive business in Indonesia.

MMC and MFTBC products are currently manufactured and distributed in Indonesia by the four partner joint venture Krama Yudha Tiga Berlian Motors (KTB). Effective April 2017, however, both brands will be administered separately in order to establish a more efficient structure and expand business in Indonesia, where the automobile market is expected to see continued growth.

KTB was established in 1970 as the core company for automotive production and distribution operations in the Indonesian market. The company has had notable success in developing the Mitsubishi brand image in Indonesia, reaching accumulated sales of some 2.5 million units by the end of 2015.

The Indonesian economy continues to show signs of strong economic growth. This has been accompanied by an expansion in the country's middle class, with increased purchasing powers as well as rapidly changing consumer needs and orientations. Restructuring the automobile business is an appropriate and timely response to those changes.

KTB will continue in its current form but will exclusively produce and distribute FUSO vehicles. A portion of the shares currently held by MC and MMC will be sold to MFTBC for a new shareholding structure that has MC owning 30%, MFTBC 30%, and KY 40% of KTB. It is expected that the new structure, which will involve stronger management support from MFTBC, coupled with an improved production system and the use of locally sourced parts, will help strengthen competitiveness.

With regard to MMC, a new distribution company will start operating in April 2017 as well. Under its new shareholding structure, MC will hold 40%, MMC 30%, and KY 30% of shares. A newly established factory, PT Mitsubishi Motors Krama Yudha Indonesia (MMKI), will also start production in April 2017. The opening of MMKI will facilitate the introduction of new models and the expansion of MMC's product line up and is expected to lead to increased market share and greater profits for MMC as the company continues to strengthen its sales network.

For MC, the automotive business is among those with the most potential to help boost the company's growth, while at the same time contributing to the Indonesian economy.


Contact:
Mitsubishi Corporation
Telephone: +81 3 3210 2171 
Facsimile: +81 3 5252 7705




Topic: Press release summary
Sectors: Automotive
http://www.acnnewswire.com
From the Asia Corporate News Network


Copyright © 2021 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.


Mitsubishi Corporation Links

http://www.mitsubishicorp.com

https://ph.linkedin.com/company/mitsubishi-corporation

Mitsubishi Corporation
Jan 19, 2021 09:25 HKT/SGT
Mitsubishi Corporation: Commercial Operations Commence at Methanol / Dimethyl Ether Plant in Trinidad and Tobago
Dec 24, 2020 16:01 HKT/SGT
Vietnam Pilot Project Utilizing TradeWaltz Platform Adopted Under Government's Supply-Chain Diversification Scheme
Dec 8, 2020 15:01 HKT/SGT
MC Signs Rolling Stock Contracts with Myanma Railways
Nov 24, 2020 13:15 HKT/SGT
Mitsubishi Corporation Signs Contract with Egyptian Government for Phase 1 of Cairo Metro Line 4
Oct 30, 2020 23:10 HKT/SGT
Hitachi Rail and Mitsubishi Corp to Deliver Metro de Panama Line 3 worth JPY 92.0 Billion
Oct 28, 2020 09:30 HKT/SGT
Trials of Jointly Developed Compact LNG Filling System to Commence in Hokkaido
Oct 27, 2020 11:25 HKT/SGT
Mitsubishi Corporation: Cross-Industry Investment by Seven Enterprises in New TradeWaltz Platform
Oct 1, 2020 09:09 HKT/SGT
MC Commences Feasibility Study on Biometric Authentication Platform in Turkey
Sept 23, 2020 15:00 HKT/SGT
Mitsubishi Corporation: Use of CO2 in Concrete / Partnership with Blue Planet Systems Corporation
Sept 15, 2020 08:41 HKT/SGT
Mitsubishi Corporation and Surbana Jurong Joint Venture to Form Partnership with SinarMas Land to Advance Smart, Sustainable Transit-Oriented Developments in Indonesia
More news >>
 News Alerts
Copyright © 2021 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Privacy Policy | Terms of Use | RSS
US: +1 800 291 0906 | Beijing: +86 400 879 3881 | Hong Kong: +852 2217 2912 | Singapore: +65 6304 8926 | Tokyo: +81 3 6859 8575

Connect With us: