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Ford Indonesia to spend IDR 130 billion to upgrade sales services
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Tuesday, 16 Oct 2012

The Jakarta Post reported that Ford Motor Indonesia, a subsidiary of US automobile giants Ford Motor Co, will ramp up dealer networks across Indonesia in 2013 in a bid to reach higher shares in Indonesia's booming automotive market.

Mr Bagus Susanto MD of Ford Motor Indonesia said that the firm would spend up to IDR 130 billion in investment to build as well as upgrade sales services and spare part centers.

He added that it would open eight new outlets in major cities, including Denpasar, Jakarta, Pontianak and Surabaya, while modernizing five existing outlets in Bogor, Jakarta, Malang, Palembang and Palu.

Mr Bagus said that "Introduction of new products will not generate maximal outcomes if that isn't supported by sufficient dealership networks. That's why this expansion will be one of our focus points."

In recent years, Ford has gained a stronger presence in Indonesia as sales have picked up significantly.

In 2011, for example, its sales jumped by 94% to 15,988 units, driven largely by its new sedan Fiesta, which booked 7,005 units in sales, or 43.81% of its total sales.

However, during January to September 2012, sales plunged by 34% YoY to 8,084 units from 2012, because of a shortage of spare parts supplied during massive flooding that hit Thailand in July 2011 and affected the company’s production facility in the country.

The plant produces the company's best selling vehicles like the Fiesta, Ford Ranger and Ford Everest for the Indonesian market. The Fiesta still dominated sales during the designated period, with 4,903 units, representing 60.65% of overall sales.

Newly appointed Ford ASEAN president Mr Matt Bradley said that Indonesia promised a high growth opportunity for Ford due to its huge population and surging income level that created a new base of car buyers. He added that "Our share in Indonesia is at the level that we think can still grow significantly. We know that the automotive industry in Indonesia, according to analysts and third parties, will approach two million toward the end of the decade."

Source - The Jakarta Post


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