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%
KTB Overview
Start of operations: July 1970
Address: Jl. Jend A. Yani, Proyek Pulo Mas Jakarta Timur 13210
P.O.BOX
Main business: Production, import, export and sales of MFTBC and MMC
brand products
Shareholders: MC 40%, KY 40%, MFTBC 18%, MMC 2%
Number of employees: Approx. 700 (as of August, 2016)
MMKI Overview
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
products
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