Mitsubishi Restructures Indonesian Business

10/25/96

Comline has reported that Mitsubishi plans to reorganize and strengthen its business in Indonesia. The automaker's current operations in the country are widely scattered among a parts maker, various companies that handle OEM manufacturing, and a general sales company. The Indonesian government recently lifted a ban on foreign ownership of finished automakers, raising the green flag for Mitsubishi to begin gathering all operations into one company. The company hopes the planned consolidation leads to a savings in production costs.

Mitsubishi and its Indonesian partner are negotiating the merger with the sales network and parts maker. There is a strong possibility that the consolidation will take the form of a joint venture manufacturing company.

Paul Dever -- The Auto Channel