Business Development Asia LLC
South East Asian Automotive News
ISSUE 8, AUGUST 1998
INDONESIA
PT Astra International, Indonesia’s leading car manufacturer, has suspended production for two months after a 63.6% decrease in car sales in Q1. The company also saw a 49.7% drop in motorcycle sales through its JV with Honda. Astra blames high interest expenses and foreign exchange losses for its Q1 results. (June 25th 1998)Automobil Lamborghini SPA, the Italian carmaker, has been purchased by Volkswagen AG for about US$84m. Lamborghini was previously owned by Hutomo Mandala Putra, the youngest son of former Indonesian President Suharto, and Mycom Bhd, a Malaysian corporation. (July 27th 1998)
Gaikindo, the Association of Indonesian Automotive Industries, reported that vehicle sales are expected to decrease this year to 60,000 units from 390,000 in 1997. GDP growth of 1% generally translates into car sales growth of 3%. (July 23rd 1998)
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