PIAGGIO HALTS SCOOTER PRODUCTION IN INDONESIA

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GMI

Piaggio has stopped producing scooters in Indonesia following declining sales over the past several years.

Data at the association of motor vehicle industries (AISI) , which groups producers that account for 80% of motorcycles sales in the country showed that Piaggio has stopped producing Vespa scooters since January, 2005.

In January 2004 Piaggio produced 156 units of Vespa Sccoter, rising to 242 units in April, but in December its production shrank to only 24 units, bringing its total production to 1,819 units in the whole of 2004.

Piaggio is still operational but some of its scooters are imported in completely built up form, AISI chairman Ridwan Gunawan said.