Ford Motor Company to Close Operations in Indonesia & Japan

Ford's decision to cease operations in Indonesia comes nearly one year after American multinational corporation General Motors Company (GM) decided to stop manufacturing its GM-branded cars in Indonesia. By shutting down its assembly plant last year, about 500 jobs were lost.

Indonesia is a difficult market for American and European car manufacturers. Japanese car producers remain the dominant players in Indonesia’s car manufacturing industry, particularly the Toyota brand. More than half of total domestic car sales are Toyota-branded cars.

Read Analysis: Overview of Indonesia's Automotive Industry

With low per capita car ownership and an expected acceleration in economic growth, Indonesia remains an attractive sales market for automakers. However, to quote the words of GM Executive Vice President Stefan Jacoby expressed in February 2015 "GM got it wrong in going head-to-head with the Japanese in a market that constitutes their 'backyard'."

Indonesian Car Sales (CBU):

Month	Sold Cars 2012	Sold Cars 2013	Sold Cars 2014	Sold Cars 2015
January	76,427	96,718	103,609	94,194
February	86,486	103,278	111,824	88,740
March	87,917	95,996	113,067	99,410
April	87,144	102,257	106,124	81,600
May	95,541	99,697	96,872	79,375
June	101,746	104,268	110,614	82,172
July	102,511	112,178	91,334	55,615
August	76,445	77,964	96,652	90,537
September	102,100	115,974	102,572	93,038
October	106,754	112,039	105,222	88,408
November	103,703	111,841	91,327	86,938
December	89,456	97,706	78,802	73,264
Total	1,116,230	1,229,916	1,208,019	1,013,291

 

	2008	2009	2010	2011	2012	2013	2014	2015
Car Sales (car units)	607,805	486,061	764,710	894,164	1,116,230	1,229,916	1,208,019	1,013,291
Car Exports (car units)	100,982	56,669	85,769	107,932	173,368	170,907	202,273	200,000¹

^{¹ forecast
Source: Gaikindo}

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