TOKYO, Oct 13, 2016 - (JCN Newswire) - Mitsubishi Motors Corporation (MMC) and business partners Mitsubishi Corporation (MC), PT Krama Yudha (KY) and Mitsubishi FUSO Truck and Bus Corporation (MFTBC) reached a basic agreement on restructuring MMC-brand vehicle sales operations in Indonesia in order to strengthen their Indonesian operating base.
Under the basic agreement, the current distributor PT Krama Yudha Tiga Berlian Motors (KTB) will be split into MMC and MFTBC brands and a new distributor dedicated to the MMC brand will be set up. The new distributor will enhance MMC's passenger car sales organization in Indonesia through promoting areas such as branding, sales personnel training, improving the quality of after-sales services and building up the dealer network. The new company is due to start sales operations in April 2017.
MMC, in partnership with MC and KY began automobile production and sales in 1970 and since then business has grown focusing mainly on commercial vehicle sales.
To meet further expected growth in the Indonesian passenger car market, MMC is preparing to commence production in April 2017 in a new factory at Mitsubishi Motors Krama Yudha Indonesia (MMKI). In October 2017, MMC also plans to start production of a new compact MPV segment model for which there is a large demand in Indonesia.
MMC will work to further expand profits in Indonesia through expanding its model lineup, moving its focus from small commercial vehicles to passenger vehicles, strengthening the sales aspect with the new MMC brand-focused distributor in addition to production through the new factory at MMKI and new product.
New Distributor Overview
Start of operations: April 2017
Main business: Import and sales of MMC brand products
Shareholders: MC 40%, KY 30%, MMC 30%
Start of operations: July 1970
Address: Jl. Jend A. Yani, Proyek Pulo Mas Jakarta Timur 13210
Main business: Production, import, export and sales of MFTBC and MMC
Shareholders: MC 40%, KY 40%, MFTBC 18%, MMC 2%
Number of employees: Approx. 700 (as of August, 2016)
Start of production: April 2017
Address: Kawasan Greenland International Industrial Center(GIIC)
Blok CH No.01 Kota Deltamas (Desa Pasirranji Kecamatan
Cikarang Pusa Kabupaten)
Bekasi Prefecture, West Java Province, Indonesia (37 km
east of Jakarta).
Main business: Production, wholesale sales and export of MMC brand
Shareholders: MMC 51%, MC 40%, KY 9%
Production capacity: 160,000 vehicles/year
Site area: 30 hectares
Number of employees: Approx. 3,000 (scheduled for March 2018)
Models to produced: Pajero Sport, Colt L300, compact MPV
About Mitsubishi Motors
Mitsubishi Motors Corporation is the fifth largest automaker in Japan and the fifteenth largest in the world by global unit sales. It is part of the Mitsubishi keiretsu, formerly the biggest industrial group in Japan, and was formed in 1970 from the automotive division of Mitsubishi Heavy Industries.
Throughout its history it has courted alliances with foreign partners, a strategy pioneered by their first president Tomio Kubo to encourage expansion, and continued by his successors. A significant stake was sold to Chrysler Corporation in 1971 which it held for 22 years, while DaimlerChrysler was a controlling shareholder between 2000 and 2005. Long term joint manufacturing and technology licencing deals with the Hyundai Motor Company in South Korea and Proton in Malaysia were also forged, while in Europe the company co-owned the largest automobile manufacturing plant in the Netherlands with Volvo for ten years in the 1990s, before taking sole ownership in 2001.
Public Relations Department
Oct 13, 2016 20:13 HKT/SGT
Source: Mitsubishi Motors
Topic: Press release summary
From the Asia Corporate News Network
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