General Motors, the parent company of Chevrolet will cease vehicle sales in the Indonesian market by the end of March 2020. This was revealed by Hector Villarreal, President of GM Southeast Asia after a comprehensive review of potential future business plans for GM Indonesia.
“Globally, GM is taking tough actions to focus its capital and resources. This difficult decision is consistent with GM’s global strategy to focus on markets where there is a clear pathway to sustainable profitability.
“In Indonesia, we lack the scale and domestic manufacturing footprint to sustainably compete in the volume segments of the market.
“These factors have also made our operations more exposed to broader factors in Indonesia, like softening commodity prices and foreign currency pressures.
“Regrettably, this decision impacts a number of our small team of employees, who GM will support with an appropriate severance package and transition support. We are committed to supporting our stakeholders through the transition.”
“Chevrolet owners can also rest assured that we will continue to honor all vehicle warranties and provide aftersales support. Customers will continue to be able to get their Chevrolet vehicles serviced and repaired at authorized outlets throughout Indonesia,” said Villareal.
Chevrolet’s move to close its Indonesian operations echo Ford’s which shuttered their operations there in 2016.
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