GM considers selling Chevrolets in South Korea

[Hurricane]

GM considers selling Chevrolets in South Korea
Friday May 16, 10:30 am ET
General Motors exec says automaker considers launching Chevrolet brand in South Korea

SEOUL, South Korea (AP) -- General Motors Corp. is considering launching its Chevrolet brand in South Korea to capture a larger share of the country's growing market for imported cars, a company executive said Friday.

The U.S. automaker will make a decision on the move after completing a study by the end of this year, said James H. Raymond, executive director of GM's Asia-Pacific vehicle sales, service and marketing division.

GM Korea currently sells Cadillac sedans at 41 million to 120 million Korea won ($39,000-115,000) each and Saab sedans at 37 million to 59 million won.

South Korea has become more important lately because imported vehicles are now claiming a bigger share of the market, said Raymond.

GM hopes to more than double its South Korea sales this year, Raymond said. It sold about 600 Cadillacs and Saabs last year.

However, it will be fighting against the market trend. The South Korean passenger car market share of the U.S. automakers based in the Detroit area -- GM, Ford Motor Co. and Chrysler LLC -- has shrunk to 11.7 percent in the January-April period from 15 percent in 2004, according to the importers' association.


More here: http://biz.yahoo.com/ap/080516/skore...olet.html?.v=2

[Ming]

This doesn't make much sense to me given that Chevrolet overseas is pretty much all rebadged Daewoo models (and Holden models - for which Daewoo already has one). Not unless GM's ultimate goal is to replace the Daewoo brand with Chevrolet in Korea (and just keep GM Daewoo as the name of the subsidiary producing the cars).

Sure there might be a niche market for some American made cars like the HHR or even Corvette, but if I was a Daewoo brand fan in Korea I'd watch this one closely. Seems like a trojan horse to displace the Daewoo brand, which might not be a bad thing from a global perspective.

What's next, sell Chevies in Australia?

[WishIhadatruck]

Originally Posted by Ming

What's next, sell Chevies in Australia?

How about selling G8's in Australia? Makes just as much sense.

Maybe they are going to sell Malibu's or something? Who knows what they might sell in S Korea. I'm not that familiar with the market.

[member12]

Selling Chevrolets instead of Daewoo?

Fine by me.

Selling along side of Daewoo?

Bad idea.

[Ambalanche]

Originally Posted by Ming

This doesn't make much sense to me given that Chevrolet overseas is pretty much all rebadged Daewoo models (and Holden models - for which Daewoo already has one). Not unless GM's ultimate goal is to replace the Daewoo brand with Chevrolet in Korea (and just keep GM Daewoo as the name of the subsidiary producing the cars).

Sure there might be a niche market for some American made cars like the HHR or even Corvette, but if I was a Daewoo brand fan in Korea I'd watch this one closely. Seems like a trojan horse to displace the Daewoo brand, which might not be a bad thing from a global perspective.

What's next, sell Chevies in Australia?

I was thinking the same thing. The Aveo and looks like soon the Cobalt will be sourced from there anyway, so they may just be rebranding everything now. At the rate GM is expanding the Chevrolet name globally, before long there won't be a need to call themselves General Motors, they can just call themselves Chevrolet. Cadillac, Pontiac, Holden, divisions of Chevrolet!

[tgagneguam]

In South Korea, imported automobiles accounted for 6.2 percent of the passenger car market in April, up from 4.9 percent a year ago, according to figures from the Korea Automobile Importers and Distributors Association.

I find it very difficult to imagine that patriotism to Korean brands is what explains this pathetic penetration. It's certainly not Korean-car supremacy in terms of design and engineering that explains it. It's sad, actually, as the government is very much limiting consumer choice.

[YupYupYup]

They are just bringing their global branding strategy into line. Chevy name is global; Daewoo is not (save for a few countries that it sells its cars under its own name).

Until recently, the South Korean government imposed a 100% tax on foreign cars in an archaic effort to force people to only buy Korean makes. They even use to tax audit any Korean who bought a foreign car, treating them like criminals or traitors. They really hassled them. Things must be changing. I wonder if the re-badged Chevrolets will actually qualify as Korean cars in the market?

[nadepalma]

Originally Posted by Ming

This doesn't make much sense to me given that Chevrolet overseas is pretty much all rebadged Daewoo models (and Holden models - for which Daewoo already has one). Not unless GM's ultimate goal is to replace the Daewoo brand with Chevrolet in Korea (and just keep GM Daewoo as the name of the subsidiary producing the cars).

Sure there might be a niche market for some American made cars like the HHR or even Corvette, but if I was a Daewoo brand fan in Korea I'd watch this one closely. Seems like a trojan horse to displace the Daewoo brand, which might not be a bad thing from a global perspective.

What's next, sell Chevies in Australia?

I was thinking the exact same thing - makes no sense.

The only thing I can think of is that some home-grown products like the Malibu or some trucks may make it over there. The Tosca is a nice car, but it's on the small side right? Maybe something a little larger between the Tosca and the Holden-based model but with a Chevy badge?

Now that the US seems to have a free-trade pact with South Korea, maybe having US-made Chevys sold in S. Koera is a good move?

I have no idea.

Eventually phasing out the Daewoo nameplate may be their ultimate intention - but I wonder how this will affect their brand loyalty/recognition, etc. From what I've read, Koreans are incredibly proud people; seeing one of their domestic brand names axed may make others flee the marque.

Of course, a "shared name" may work -- like "Renault-Samsung". I dont know how successful it has been for them to market cars under this nameplate.

I also dont know if the cars actually say "Renault-Samsung" on the decklid. I know that Daewoo is technically "GM Daewoo" - but does it actually say it on the car?

"Chevrolet-Daewoo" - sounds like a mouthful to me.

[nadepalma]

Originally Posted by Ambalanche

I was thinking the same thing. The Aveo and looks like soon the Cobalt will be sourced from there anyway, so they may just be rebranding everything now. At the rate GM is expanding the Chevrolet name globally, before long there won't be a need to call themselves General Motors, they can just call themselves Chevrolet. Cadillac, Pontiac, Holden, divisions of Chevrolet!

Which, ironically, is how Ford and others have done it. GM is probably one of the only global brands out there who's parent company is different from it's staple brand.

Nissan was like this before -- Datsun was the brand and Nissan was the corporate parent. And we all know that the Datsun name died and the Nissan name adopted.

But GM was always GM - and to some extent it hurt their brand awareness in some markets. Compare what GM did in some markets (keeping the Vauxhall, Holden, and Opel nameplates) compared to what Ford has done (establish the Ford blue oval everywhere) and you can see how this has affected their world-wide presences.

GM seems to be reversing itself now a bit by making Chevy and Cadillac both global brands.

Just my two cents.

[roteague]

Originally Posted by Ming

This doesn't make much sense to me given that Chevrolet overseas is pretty much all rebadged Daewoo models (and Holden models - for which Daewoo already has one). Not unless GM's ultimate goal is to replace the Daewoo brand with Chevrolet in Korea (and just keep GM Daewoo as the name of the subsidiary producing the cars).

Sure there might be a niche market for some American made cars like the HHR or even Corvette, but if I was a Daewoo brand fan in Korea I'd watch this one closely. Seems like a trojan horse to displace the Daewoo brand, which might not be a bad thing from a global perspective.

What's next, sell Chevies in Australia?

Simple, Koreans like American products for the most part, and foreign cars have a "cachet" there. I think it makes perfect sense if you are talking about selling the Malibu and Impala, or even the upcoming Traverse. I don't think it would be the full Chevy line.

[BigThreeForever]

Good luck to GM with this one. Excuse me while I stop smirking.

The Koreans have one of the most - perhaps the most - restricted markets in the developed world. They use any and all methods to deter foreign penetration.

Not sure if this classic is still being used, but here goes: buyers of imported cars are (or were) singled out for a special tax audit by the local tax inspectors.

Or try this one: dealers in imported cars are (or were) allocated crappy backstreet lots well away from main dealership traffic and are limited to a certain size (i.e X square meters only).

The South Koreans are not a stupid people. Far, far from it. Their government is far more shrewd and nationalistic than the naive free-market, open-borders crowd who mismanage America and Europe and their rapidly dying industrial bases.

As a matter of interest, check out how many Japanese cars are (or aren't) sold in South Korea.

These people are very, very smart.

[mbukukanyau]

there is a lot of North American Chevy's Korea can use
Tahoe,
Corvette
Malibu
HHR
Traverse
they can go to Suzuki and opel and fill the line up

[GM-Joe]

makes sense if the new revenues can cover the marketing expenses.

[The Law]

could use opel as Chevy but does make sense when GM wants to have global identification of all brands. Unless, they use this as way to build Pontiac vehicles offshore.That might work as Pontiac needs a big shot in the arm they have nothing.If Gm could allow Mazda's lead and build sporty fun cars instead of the big HP ripping motors of Ol'.This would put Pontiac on the map and give Chevy a bigger market share in SK.

[gardnet1]

Given Buick's success in China, that's the route I would take. And let Buick or Cadillac handle specialty sales of the Corvette & Camaro.

Maybe the weak $ is starting to pay off.