Tuesday, January 12, 2010

GM Daewoo's Fate

I feel GM Daewoo, once a huge success story, will see its presence in Korea erode. With GM's plan to relocate more Korea model production to the US, GM Daewoo's export numbers will drop even more. Once the Number 3 Korean car maker, in the wake of the global auto meltdown, Hyundai and Kia have gained even more local ( and global) market share. Hyundai and Kia have topped 80% now in Korea. GM Daewoo continues to slide. Reducing their export production only adds to the situation.

Chosun Ilbo notes
GM to Move Gentra Production to U.S.
One more GM Daewoo model made in Korea for export to foreign markets will be produced in the U.S.

GM said Monday that the Gentra subcompact (Chevrolet Aveo in the U.S.) will be manufactured at its Orion Township plant in Michigan beginning late this year to be sold in the U.S. from early 2011. The U.S. plant will produce 160,000 Gentras a year.

GM decided in November last year to move production of the Lacetti Premier (Chevrolet Cruze) from GM Daewoo's Gunsan plant to its Lordstown plant in Ohio from April this year.

In 2008, GM Daewoo shipped 93,000 Gentras and 30,000 Lacetti Premiers to North America. With production of the two models moving to the U.S., GM Daewoo's exports to North America will stop completely this year.

1 comment:

  1. Good to know about their production and sales.They are doing pretty steady in the turbulent market.There are consumers whose expectations are quite high regarding the cars these days.