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http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=FT&Date=20061011&ID=6095713

GM gives Daewoo key role in small car plan
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Financial Times
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GM Daewoo Auto and Technology said on Wednesday that it had been selected as a global development base for General Motors' small car platform, which will help the US carmaker expand in Asia and Europe.

The announcement came as global demand for small cars continues to increase amid high oil prices and GM struggles with a declining US market share due to rising competition from Asian carmakers.

The US carmaker's South Korean unit, which accounts for about 10 per cent of GM's worldwide production, will design and develop a mini-car platform with diverse body styles, which will be sold under numerous GM brands in both mature and emerging markets.

"Besides helping GM in Asia-Pacific, where mini-vehicles are in great demand, this will also give us the potential to strengthen our position in more traditional markets like Europe, where they are popular as well," said Michael Grimaldi, GM Daewoo's new president.

Mr Grimaldi said GM's decision underlined a vote of confidence for the Korean unit, which has continued to lose market share to its Asian rivals such as Toyota and Hyundai Motor due to high production costs and heavy employee benefit obligations.

Since GM bought into the bankrupt Korean carmaker in 2002 for $1.2bn, GM has nursed Daewoo back to health by boosting exports and taking advantage of its well-established global sales network. The Korean unit reported earnings of $70m in its third year of operation last year on sales of $8.9bn.

Rapid sales growth at GM Daewoo also helped the US carmaker make profit in Asia this year, while its North American operations suffered losses.

GM Daewoo mainly builds low-cost compact cars and exports about 90 per cent of its output to more than 150 markets. The company expects its vehicle sales to exceed 1.5m units this year, up more than 30 per cent from a year ago, and the number will approach 2m units in the near future.

"GM Daewoo has become the most productive unit within the GM group," said Kim Hak-ju, an analyst at Samsung Securities. "Although GM keeps downsizing in the US market, it is expanding in Asia." GM Daewoo declined to specify how much investment it would get from its parent for the development of a mini-car platform but Mr Grimaldi said developing this global product base would require additional investment.

GM Daewoo had no plans to build additional plants for the project.

Last year, GM acquired Daewoo's Bupyeong plant, which was not originally included in the 2002 acquisition due to its militant labour union, and it has recruited 2,841 new employees including all 1,605 former employees who were laid off by Daewoo and wished to be rehired.

This year, it built a diesel engine plant in Gunsan and launched new models such as the Tosca mid-sized sedan and the Winstorm sports utility vehicle.

Copyright 2006 Financial Times
Well, GM Daewoo secures the A-segment global chassis development in addition to B and C-segment chassises. Meaning all Chinese market A, B, and C-segment vehicles will continue to be developed in Korea instead of China.

This has a huge implication for Chinese auto parts industry, since these Korean developed A, B, and C segment GM vehicles sold in China will be heavily dependent on Korean components and hinder the development of native Chinese auto parts industry. Korea is already the biggest auto parts exporter to China because of booming sales of GM Daewoo and Hyundai vehicles, which all heavily depend on Korean components.
 

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Daewoo and Hyundai are shitty cars! (Hyundai even came out with a value luxury model to compete with BMW, what a joke) And GM pick their manufacturers over Chinese ones that tells you that those chinese ones sucks even worse than Hyundai!!!

Daewoo, Hyundai, chinese cars... who in the right mind would buy them? I'd even buy chevys over those POS.
 

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asdfzxcv said:
Daewoo and Hyundai are shitty cars! (Hyundai even came out with a value luxury model to compete with BMW, what a joke) And GM pick their manufacturers over Chinese ones that tells you that those chinese ones sucks even worse than Hyundai!!!

Daewoo, Hyundai, chinese cars... who in the right mind would buy them? I'd even buy chevys over those POS.

Hyundai cars are better than American cars. Have you seen the new Hyundai Sonata. It looks better than a Honda Accord and a hell of a lot better than any American peice of sh!t.
 

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I'd even buy chevys over those POS.
Long term goal of GM is to sell Daewoos as Chevrolets for all compact and mid-size models.

Already all Chevrolets sold outside of North America(China and Europe) are Daewoos; the US too will make this transition once their current round of factory closure is completed, leaving the US plants for full size RWD cars, trucks, and SUVs only.
 

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Hold on a second...

NO WHERE IN THE ARTICLE SAID GM SHUNNED CHINA

You came up with that conclusion on your own. Based on your logic, one could just as well say GM shunned India, Japan, Germany, US, UK, Uganda, Brazil, or any other country.

Don't be stupid and make up stupid things. :nono:
 
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