Hyundai Motor Co. has signed a memorandum of understanding with the Indonesian government to build a major vehicle production complex near Jakarta.
The carmaker plans to invest nearly $1.6 billion in the project, including product development and operational costs, through 2030. Ground breaking is scheduled for next month.
Production is expected to ramp up in two years, with an initial annual capacity of 150,000 vehicles. Full capacity is listed at 250,000 units.
Hyundai says the plant products will comprise compact SUV, small MPV and unspecified sedan models tailored to customers in southeast Asia. Market-specific electric vehicles may be added later. Output will be on a build-to-order basis, according to the company.
The 8.4-million-sq-ft complex will house stamping, welding and painting operations in addition to final assembly. Hyundai and local supplier partners expect to create more than 23,000 new direct and indirect jobs. By 2021, Hyundai also plans to have a network of 100 dealers in place throughout Indonesia.
Many countries who once were major players from a vehicle production/export perspective are finding it difficult to even find their niche today.
Ram Truck chief exterior designer Joe Dehner talks about how they’ve developed the all-new pickup. “We’ve been building trucks for over 100 years,” he says. “Best I could come up with is that this is our 15th-generation truck.”
According to Kunihiro Hoshi, chief engineer for the GX 470: “Three of my top goals were to create a body-on-frame vehicle with sweeping off-road performance and unibody-like on-road capability, and, of course, it had to meet the Lexus quality standard.” He met his goals. But why would anyone want to bang this vehicle around on rocks?