Thoughts on Korean Business by Don Southerton

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...

The Korean luxury market is competitive. In addition to each of Korea's 5 automakers offering a luxury car, imports are popular. Here's GM Daewoo's new sedan. It's a rebadge of the Australian Holden WM Caprice, the Veritas replaces the GM Daewoo Statesman that was on sale since 2005 Korea media notes: GM Daewoo Unveils New Large Sedan GM Daewoo Auto & Technology Co., a unit of General Motors Corp., unveiled its new large sedan on Thursday [9-4-08] as it looks for ways to stimulate fragile demand in South Korea and compete with local stronghold Hyundai Motor Co. The Veritas sedan will "open a new chapter for GM Daewoo's product lineup," said the GM Daewoo President and CEO Michael Grimaldi, in a Korean-language statement, without giving a sales target. The new sedan uses a 3.6-liter gasoline engine and was jointly developed with Holden of Australia, another subsidiary of GM. The new car, which will be available for sale in South Korea from next month, i...