GM to Halt Car Production in Indonesia

General Motors Co. says it will phase out its modest carmaking operations in Indonesia by June, Reuters reports. The shutdown will eliminate 500 manufacturing jobs, including that of unit CEO Michael Dunne.

GM has capacity to make 40,000 Chevrolet Spin mini-MPVs per year at its Bekasi facility outside Jakarta. But Stefan Jacoby, who is responsible for the southeast Asia market, tells the news service the cost of importing parts for the $12,000 car made the operation unprofitable.

Spin sales also lagged expectations, totaling only 11,400 units, including exports, last year. Japanese carmakers control more than 90% of the Indonesian market.

GM hasn't given up on Indonesia. The company and China partner SAIC Motor Corp. are building a manufacturing facility near Jakarta to make low-cost Wuling brand vehicles. A source tells Reuters that GM-SAIC don't plan to take over the nearby Bekasi plant.