Two weeks later the Japanese occupied the plant and interred all foreigners; on 31 December General Motors wrote off the whole enterprise. The plant was taken over by Toyota, and was used to assemble trucks for the military. Volkswagen and their local associate PT Garuda Mataram was a serious player till the mid-1970s however gross sales dropped precipitously within the latter half of the decade. In 1970, Volkswagen entered right into a collaboration with Mercedes-Benz Distribution Indonesia to set up a producing line in Tanjung Priok, Jakarta.

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