MFTBC to Increase its Share in Indonesian FUSO Distribution and Wholesale Setup – Focus on Commercial Vehicles
October 13, 2016
Under a Framework Agreement executed between MFTBC, MC, MMC and KY, MFTBC will increase its shareholding in the Indonesian wholesale and distribution business from 18% to 30%
MFTBC will further strengthen its Indonesian business with this agreement
FUSO has been the market leader for 46 consecutive years in Indonesia and continues to see growth potential in the commercial vehicle market
Kawasaki: Mitsubishi Fuso Truck and Bus Corporation (MFTBC), one of Asia’s leading commercial vehicle manufacturers has entered into a Framework Agreement with Mitsubishi Corporation (MC), Mitsubishi Motors Corporation (MMC), and PT Krama Yudha (KY). As part of this agreement, the local wholesaler and distributor PT Krama Yudha Tiga Berlian Motors (KTB) will focus solely on the Fuso branded commercial vehicle business in the future and its passenger car business will be spun off into a separate legal entity. At the same time MFTBC will increase its shareholding in the restructured company from 18% currently to 30% going forward, resulting in a shareholder composition of, MFTBC – 30%, KY – 40% and MC – 30%. The overall transaction is subject to customary conditions precedent including merger control clearances.
KTB will serve as the dedicated wholesaler and distributor of FUSO vehicles in the Indonesian market and will continue to partially own its related production business that assembles the vehicles for Indonesia.
Dr. Wolfgang Bernhard, member of the Daimler AG board responsible for Trucks and Buses: “By increasing our stake in our partner KTB, we are underlining the importance of the Indonesian market and can be even more active locally. Concentrating our sales activities completely on the commercial vehicle market fits perfectly into our Daimler Trucks strategy of consistently focusing on the needs of our customers. With this shift, we as a market leader are positioning ourselves in order to continue to tap market potential in Indonesia in the best way possible.”
Marc Llistosella, President and CEO of MFTBC and Head of Daimler Trucks Asia, responsible for the FUSO brand: “With our FUSO brand we have been the clear market leader in Indonesia for over 40 years. By increasing our stake in KTB, we can expand on our position even further.”
Indonesia has a population of about 250 million, of which 70% of the people are under the age of 40. The annual GDP growth rate is 5.1% in 2016. The number of the middle class is forecasted to increase to more than 140 million people in 2020. The world’s 4th largest populous country with growth prospects is expected to be supported by a large number of infrastructure projects, and it can be assumed that the transport sector and thus the demand for commercial vehicles will further develop. FUSO has been the market leader in Indonesia for 46 consecutive years since 1970 with a current market share of about 47%. Indonesia is FUSO’s largest export market.
FUSO at a Glance
FUSO is one of the brands of Daimler Trucks, covering nearly all regions around the world such as Asia, Africa, Latin America, Europe and the Middle East. FUSO’s light-duty to heavy-duty trucks (GVW 3.5–49 tons), vans, industrial engines and buses are sold in more than 160 markets. The Fuso brand is based on the four core brand values; Trusted Quality, Economic Efficiency, Solid & Functional Design and Committed Services.
MFTBC at a Glance
Based in Kawasaki, Japan, Mitsubishi Fuso Truck and Bus Corporation (MFTBC) is one of Asia’s leading commercial vehicle manufacturers. In 2015, the company sold a total of about 154,200 vehicles including light-, medium- and heavy-duty trucks and buses under the Fuso brand. 89.29% of its shares are owned by Daimler AG and10.71% by various Mitsubishi group companies. MFTBC is an integral part of the Daimler Trucks division of Daimler AG.
KTB at a Glance
PT Krama Yudha Tiga Berlian Motors (KTB) is the authorized distributor for Mitsubishi Motors Corporation (MMC) that markets passenger vehicles (Pajero Sport, Outlander Sport, Mirage, Delica) and light commercial vehicles ( L300, T120SS ), and Mitsubishi Fuso Truck & Bus Corporation (MFTBC) that markets commercial vehicles (Colt Diesel, FUSO). Specifically for the commercial vehicle segment, since its entry in 1970, Mitsubishi managed to become the market leader for 46 consecutive years, with the largest number of commercial vehicles in Indonesia. The current shareholder composition of KTB is – Mitsubishi Corporation (MC, 40%), PT Krama Yudha (KY, 40%), MFTBC (18%) and MMC (2%).