General Motors plans Indonesia factory

Gasgoo From Reuters

Reuters (New York) - General Motors (GM.N) is planning to build a "people mover" van in Indonesia with an aim to eventually using the country as an export hub, according to a Wall Street Journal story on Thursday.

The story, quoting an unnamed person close to the company, said GM could announce plans as soon as Friday to build a factory near Jakarta that could produce about 50,000 vehicles a year.

GM had no immediate comment.

The idea would be to turn the factory in a major production base to allow for cheap export of cars to other southeast Asian countries including the Philippines, Malaysia and Vietnam, according to the story which said the U.S. company wants to boost its presence in market dominated by Japanese car makers.

GM left the Indonesian market in the mid-2000s when it closed a small assembly plant near Jakarta, according to the story which said it is looking to move back there as sales slow in other markets such as the United States and Europe.

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