Ford Motor Company to Close Operations in Indonesia & Japan
American car manufacturer Ford Motor Company decided to close all of its operations in Indonesia and Japan in 2016 due to the lack of prospects for profit in both countries. Ford spokeswoman Karen Hampton said this decision will result in the layoffs of 35 Ford staff-members in Indonesia and 292 employees in Japan. Business operations in Indonesia - which include the import of Ford and Lincoln vehicles, sales and dealerships offices - will be shut down later this year. Ford's production base in Japan will be shifted elsewhere.
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