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  • Ford withdraws from Indonesia

    Now this is a big surprise. It seems that Ford Motor Company will completely pull out of the country. This is communicated on their Indonesian website, but in the local press (e.g. Kompas) this is published as well, also without any further clarification.


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  • #2
    The picture is too small...

    But I found the link on the Ford website. Here is a suprisingly accurate google translation:

    [FONT=inherit]IMPORTANT ANNOUNCEMENT - Customer Statement[/FONT]

    [COLOR=#5F6062][FONT=Arial][FONT=inherit]Sen, January 25 2016[/FONT][/FONT][/COLOR]
    [COLOR=#5F6062][FONT=Arial][FONT=inherit][FONT=inherit]Today we have announced a difficult business decision to withdraw from all our operations in Indonesia in the second half of this year. [/FONT][FONT=inherit]This includes closing the Ford dealership and stop the sale and import of all vehicles Ford official.[/FONT][/FONT][/FONT][/COLOR]
    [COLOR=#5F6062][FONT=Arial][FONT=inherit][FONT=inherit]We want to make sure that you can continue to visit the Ford dealer for all service support sales, service, and warranty until some time next year. [/FONT][FONT=inherit]We are committed to providing continuity of service and warranty service support after our departure and will contact you again before the replacement process to inform about the new arrangements.[/FONT][/FONT][/FONT][/COLOR]
    [COLOR=#5F6062][FONT=Arial][FONT=inherit][FONT=inherit]We are grateful for the interest, support and loyalty to the Ford brand. [/FONT][FONT=inherit]And we will continue to communicate developments through this website in through this transition phase.[/FONT][/FONT][/FONT][/COLOR]
    [COLOR=#5F6062][FONT=Arial][FONT=inherit]If you have any questions, please contact our Customer Service at Ford 0807-1-90-9000[/FONT][/FONT][/COLOR]


    [COLOR=#5F6062][FONT=Arial][FONT=inherit]Sincerely, [/FONT]
    [FONT=inherit]Bagus Susanto [/FONT]
    [FONT=inherit]Managing Director, [/FONT]
    [/FONT][/COLOR]
    [COLOR=#5F6062][FONT=inherit]Ford Motor Indonesia[/FONT][/COLOR]
    I wonder if it's real or a hoax (hacked maybe?).
    Last edited by El_Goretto; 25-01-16, 17:59.

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    • #3
      It does look legit

      Originally posted by El_Goretto View Post
      I wonder if it's real or a hoax (hacked maybe?).
      Esp. since it appeared on multiple 'serious' news channels. Underneath the publication from Reuters.

      [COLOR=#000000][FONT=arial][COLOR=#222222]
      Automaker Ford Motor Co (F.N) said on Monday it will close all operations in Japan and Indonesia this year as it sees "no reasonable path to profitability" in the two countries where it has struggled to gain market share.
      [/COLOR][/FONT][/COLOR][FONT=arial]
      Ford will exit all areas of business, including shuttering dealerships and stopping sales and imports of Ford and Lincoln vehicles, according to an email from Asia Pacific President Dave Schoch to all employees in the region viewed by Reuters. Product development carried out in Japan will be shifted elsewhere.
      [/FONT]
      [FONT=arial]"Unfortunately, this also means that our team members based in Japan and Indonesia will no longer work for Ford Japan or Ford Indonesia following the closures," Schoch wrote in an email regarding the decision that was sent to employees on Monday.
      [/FONT]
      [FONT=arial]Ford, one of Detroit's "big three" automakers, follows in the footsteps of General Motors Co (GM.N), which last year decided to stop making GM-branded cars in Indonesia - with the loss of 500 jobs - amid intense competition from Japanese rivals.
      [/FONT]
      [FONT=arial]Ford began operating in Japan in 1974 and has 52 dealerships in the country, employing 292 people. Last year, it sold around 5,000 vehicles in Japan and held a share of around 1.5 percent of the imported new car market.
      [/FONT]
      [FONT=arial]In Indonesia, where it entered the market in 2002, Ford has a staff of 35 and sells through 44 franchised dealerships. Last year, it sold around 6,000 vehicles, taking a 0.6 percent share of the total new car market in a country struggling from economic slowdown.
      [/FONT]
      [FONT=arial]"In Indonesia, without local manufacturing ... there's just really no way that automakers can compete in that market, and we do not have local manufacturing," said a Ford spokeswoman based in Shanghai, confirming the content of the email.
      [/FONT]
      [FONT=arial]The company has also had a tough time selling its Fiestas, Mustangs and Explorers in the Japanese market, which is dominated by Toyota Motor Corp (7203.T), Honda Motor Co (7267.T), Nissan Motor Co (7201.T) and other domestic brands.
      [/FONT]
      [FONT=arial]On top of that, vehicle sales have been falling in Japan as the population ages and demand for cars by young people decreases.
      [/FONT]
      [FONT=arial]Ford said that its minority shareholding in Mazda Motor Corp (7261.T) would not be affected by its exit from Japan.[/FONT]

      One would think that if a brand or manufacturer would disappear completely from RI, it would be General Motors' Chevrolet. They already dismantled their Bekasi production facility and Chevrolet only makes up 2% of all cars sold here.
      Last edited by jstar; 25-01-16, 18:42.
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      • #4
        Didn't Ford also pull out of Australia recently?

        As for GM this link might be of interest in SEA.
        http://www.ft.com/cms/s/0/a336b45e-be2d-11e4-9d09-00144feab7de.html#axzz3yG536QX


        along with this one

        http://www.ft.com/intl/cms/s/876321e...#axzz3yG536QXq
        Last edited by JackoThom; 25-01-16, 18:58. Reason: to add link GM to end in Indonesia.

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        • #5
          I guess it's not time to drive a Ford again

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          • #6
            It is perhaps not that surprising. Automakers who do not have a certain percentage of "local content" face stiff tariffs in Indonesia. This makes it rather hard to compete with the Kijangs and Fortunners and Avanzas etc. There is also the separate issue that American cars for the most part are gas guzzling hunks of crap (although I will submit that Ford is probably the best of the Big 3).

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            • #7
              sorry for the customers here , value will drop quickly , with limited service and spares

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              • #8
                I think the full consequences are still pending.

                [COLOR=#444444][FONT=OpenSansSemibold]Diler Ford: Konsumen Sudah Tanyakan Nasib Mereka[/FONT][/COLOR]
                [COLOR=#444444][FONT=OpenSansRegular]Ford resmi mengumumkan mengudurkan diri dari percaturan industri otomotif Indonesia. Diler pun mengakui hal ini membuat resah para konsumen Ford....[/FONT][/COLOR]

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                • #9
                  Too bad, I thought one of the compact SUVs looked nice, and nimble enough to go through Jakarta's alleys.

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                  • #10
                    They obviously can't compete with Honda or Toyota. Huge base here.

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                    • #11
                      Didn't they just recently launch the new Everest?

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                      • #12
                        Originally posted by dafluff View Post
                        It is perhaps not that surprising. Automakers who do not have a certain percentage of "local content" face stiff tariffs in Indonesia. This makes it rather hard to compete with the Kijangs and Fortunners and Avanzas etc. There is also the separate issue that American cars for the most part are gas guzzling hunks of crap (although I will submit that Ford is probably the best of the Big 3).
                        Actually, its now the big 2 plus an Italian company.

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                        • #13
                          Now the EcoSport was doing quite well, esp. since it was made with a high ground clearance for areas with a lot of flooding. The Everest wasn't doing bad either.

                          In Japan it was also rather interesting: First they sell American SUV's and Mustangs with the steering wheel on the left, then they make a weird and unsuccessful deal with Mazda and then they introduce a Fiesta as the 'savior' which is more expensive and uses more gasoline than all its hybrid city car competitors. They really screwed up. And the amount of imported cars is 300.000. Not so bad but that money all flows to Europe.

                          That is the problem in many countries; if people want to drive European, they expect premium. Also the import prices are very high (a Focus in Japan is almost the same price as a BMW X1 and a Fiesta the same as a Mini). Then only BMW, Audi, Mercedes, Range Rover, Mini and Jaguar come into play. And a Volkswagen, Ford, Renault and Peugeot simply won't cut it.

                          I wouldn't be surprised if VAG only keeps Audi here. And the French brands could pull the plug also. (Renault is represented via Nissan anyway.)
                          Last edited by jstar; 27-01-16, 09:18. Reason: typos
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                          • #14
                            I was shocked the other day, when I was looking at the new Kijang...about 400jt...wonder if it's more about rising dollar/more expensive parts to built or Toyota Indo is quite confident the Innova can actually fetch that kind of money. An acquaintance in the auto Industry/dealership told me that people who can actually spend that much, would end up buying a more expensive car (like fortuner) or CX5...still can't beat Indonesian's imported-is-better mentality. The friend said some would rather pay 450jt (or more) for a Fortuner than a bit under 400jt for 'just' a Kijang.

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                            • #15
                              They seemed to have dropped the Kijang name, now just Innova.

                              If you look at the new spec for the "new" innova, they are quiet respectable.
                              [COLOR=#ff0000]Great spirits have often encountered violent opposition from weak minds[/COLOR]. Albert Einstein

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