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Morris Garage (MG) ZS arrived in Indonesia to challenge Honda's HRV. (Image via Liputan6.com)
Factory-less, MG borrows Wuling factory in Indonesia
Indonesia’s Industry Ministry and The Association of Indonesia Automotive Industries (GAIKINDO) revealed the plan that a new automaker from the United Kingdom, Morris Garage (MG), will “hitchhike” in its Chinese automaker's factory, Wuling, in Bekasi, West Java, to manufacture more cars.Industry Ministry director of the maritime industry, transportation equipment, and defense equipment, Putu Juli Ardika, explained that the sole agent of MG, MG Motor Indonesia, can start its business in Indonesia by being an importer for at least six months to one year. Then, the Industry Ministry will determine whether MG Motor Indonesia can establish local production activities.
MG Motor Indonesia, as the sole agent of MG, is a business unit of PT SAIC Motor Indonesia. The principal company, SAIC Motor Corporation Ltd., already acquired the domestic subsidiary PT SGMW Motor Indonesia as the sole agent of Wuling for Indonesia.
Speaking on Friday, Putu said that MG’s decision to hitchhike on Wuling’s factory is logical and mutually beneficial, as it may save budget, especially if soon MG wants to establish its own factory.
For Wuling, MG’s vehicle production may revitalize the factory operation by adding the production volume.
The Chairman of GAIKINDO, Yohannes Nangoi, also confirmed MG’s decision. Speaking on Thursday, Nangoi could not determine the exact date when MG will hitchhike on Wuling’s factory, established on a $700 million investment with 120,000-unit capacity per year.
Nangoi estimated that MG should sell its product domestically in March 2020. MG already possessed the import license for 50 finished vehicles. The first MG product coming to Indonesia will most likely by an SUV called ZS.
Source: https://bit.ly/2xoc4Wj
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