GM to close two Asian plants

GM to close two Asian plants

Restructuring in Indonesia, Thailand leads to job cuts.

March 3, 2015

Jakarta, Indonesia – General Motors is restructuring its Southeast Asia businesses, closing plants in Indonesia and Thailand.

In Indonesia, the automaker will transition to a national sales company (NSC) and will discontinue vehicle production at its Bekasi manufacturing plant near Jakarta by the end of June 2015. GM Indonesia will retain its local presence by providing customers with Chevrolet products such as the Orlando, Captiva, and Trailblazer through its dealer network.

“GM Indonesia is undergoing a market-driven transformation,” says Stefan Jacoby, GM executive vice president and president, GM International.

Several factors contributed to GM’s decision, including high material costs and reduced potential to utilize the local supplier base due to limited scale. As a result of the company’s actions, approximately 500 positions will be impacted at the Bekasi plant, which is 16km east of Jakarta. The plant, which is wholly owned by GM Indonesia, opened in 1995. It was reactivated in May 2013 after a suspension of production in 2005. The Bekasi plant currently produces the Chevrolet Spin for Indonesia and other Asian markets.

In Thailand, GM will initiate a Voluntary Separation Program (VSP) that will be open to all employees, including salaried and hourly. The VSP will provide competitive terms and conditions for current employees who wish to participate.

“Transformation cannot be achieved without changes. GM aims to optimize our structure in Thailand to create greater opportunities for our business and support impacted employees,” Marcos Purty, managing director of GM Thailand and Chevrolet Sales Thailand, says.

In Thailand, GM plans to cut its portfolio back to the Chevrolet Colorado pickup; Trailblazer, and Captiva SUVs; and Cruze passenger car. These models comprise more than 75% of Chevrolet’s sales in Thailand and account for approximately 95% of the vehicles that GM Thailand exports. The Chevrolet Sonic passenger car and Spin MPV will be phased out of the portfolio at the end of their current model year life cycle.

In keeping with its new focus on trucks and SUVs, GM Thailand has informed the Thailand Board of Investment (BOI) that it will withdraw its participation in the country’s Eco Car Phase 2 program.

Source: General Motors