General Motors failed to compete in automotive industry:Vice president

Makassar, S Sulawesi (ANTARA News) - General Motors went bankrupt in Indonesia because it failed to compete with Japanese and South Korean automotive industries, which can produce millions of units every year, Vice President Jusuf Kalla said.

"People buy a car if the model is good and the price is competitive and the look is also attractive. If sales every year just reach thousands of units it will be unable to compete," Kalla told reporters at a private residence in Makassar on Friday.

The vice president was in Makassar following his visit to Jayapura and Ambon.

Kalla remarked that the automotive industry is a long-term industry. A company should produce attractive models to lure consumers.

"The low sales of Chevrolet and Ford indicate that the American automaker cannot compete with Toyota and Honda," he pointed out.

Kalla believes that it will be difficult to compete in the automotive industry in any country where Japanese and South Korean firms are well established.

In fact, the vice president noted, the American vehicle manufacturer faces bankruptcy not only in Indonesia, but in the United States, as well.

The company went bankrupt due to the fall in commodity prices, he added.

Earlier, General Motors closed its plant in Pondok Ungu in Bekasi, West Java, and cut 500 jobs by the end of June.

The plant originally began operating in 1995, but closed between 2005 and 2013, when it reopened with a US$150 million investment. It produced the Chevrolet Spin multi-purpose vehicle.(*)