GM Daewoo's Net Profit Rises...800%!

[Ming]

GM Daewoo Net Profit Climbs 9 Fold in 2006
Wed Apr 4, 2007

SEOUL (Reuters) - GM Daewoo Auto & Technology Co., South Korea's No. 3 automaker, on Wednesday posted annual net profit of 593 billion won ($633.7 million) for 2006, up 805 percent from 65.5 billion in 2005 on brisk sales abroad.

Unlisted GM Daewoo also announced 2006 revenue of 9.60 trillion won ($10.26 billion), up 27 percent from 7.53 trillion in 2005. The company disclosed its results a day before the start of the Seoul Motor Show.

"GM Daewoo got a strong boost from its exports, which took full advantage of GM's sales network worldwide," said Park Young-ho, an analyst at Daewoo Securities.

General Motors Corp. (GM.N: Quote, Profile , Research) and other partners took a majority stake in some of the assets of failed Daewoo Motor in 2002, creating GM Daewoo.

GM Daewoo exports more than 80 percent of its output to Europe, North America and emerging markets such as Russia, China and India under the Chevrolet, Pontiac, Holden and Suzuki brands.

Source: http://investing.reuters.co.uk/news/...2582-OISBI.XML

[windvale]

I'll take the one on the right...

[Psionic Wibbly]

why not shift GM's entire production offshore: korea; thailand, china india; australia, russia, eastern europe-wherever it makes financial sense.

at the end of the day a profitable company is beneficial to the home country as that is where the profits will eventually end up.

also: the newly prosperous members of these countries will end up buying more american product-which in turn will also benefit USA.

[JazzyChef]

800% that's just mindblowing!!! Great job GM Daewoo

[tomcat_cool17]

Dang!!!!!!!

[1999 White C5 Coupe]

Originally Posted by Psionic Wibbly

why not shift GM's entire production offshore: korea; thailand, china india; australia, russia, eastern europe-wherever it makes financial sense.

at the end of the day a profitable company is beneficial to the home country as that is where the profits will eventually end up.

also: the newly prosperous members of these countries will end up buying more american product-which in turn will also benefit USA.

Some of the profits may end-up with the home country, but the jobs, technical expertise, investment in the home country, spin-off business to the home country suppliers, etc. etc. etc. goes offshore.

At least Chevrolet still tries to make us think they are working for the USA with their "American Revolution" advertisements (especially for the vehicles built in Asia, Canada, or Mexico).

[Lewie]

wow! keep up the good work!

[kenman923]

I think it's time to bring back the Daewoo dealer network and import these babies to the U.S.

[Psionic Wibbly]

they can at least use the threat of offshoring to finish the UAW off once and for all.

[skylark68]

Nah, just sell them as rebadged Saturns

[69Firebird400]

Originally Posted by kenman923

I think it's time to bring back the Daewoo dealer network and import these babies to the U.S.

I disagree. That would just further fragment the US auto market and put yet more brands under GM's umbrella in the US, when it already has at least 2-3 too many. Many of these same cars are, or will be soon, in the US, just sold as Aveos or Suzukis.

[ZvetteGuy]

Originally Posted by kenman923

I think it's time to bring back the Daewoo dealer network and import these babies to the U.S.

You're referring to the cars or the girls?!

[Ming]

I also disagree. GM Daewoo can remain in its home country, but it serves the interests of Chevrolet worldwide much better by supplying Chevies.

In Ming's opinion, GM Daewoo should have a lineup of cars that are built with the intent from the development stage of being sold as Chevrolets and Buicks worldwide (and Suzukis if Suzuki wants to keep the relationship going), and they can continue to slap a Daewoo badge on at home if they like. The Chevrolet mini-cars in New York this week seem to back up this strategy.

But don't bring the Daewoo brand back. It would be an uphill battle to climb, and an uneeded battle.

What would Chevy of Europe do without Daewoo? Start selling Trailblazers again? That would work.... Chevy of India? They can't rely on old Subarus and Isuzus forever.

As far as the US market goes, 69Firebird400 has the better idea.

I would add to that my desire to see another established GM brand get a Daewoo "rebadge" or reskin because there's too much reskinning going on within the US market - get something a bit more unique over here, no more G5 type clones when a GMDAT, GM do Brasil or Opel alternative exists. Perhaps that nice diesel above... Since Daewoo already sells Buicks to China, and Buick sales are forever in the dumpster it seems while Aveo sales were up 50% last month and Suzuki sales are booming off the back of the Forenza, it would seem the natural course. Unless you Buick status-quo guys here want to see Buick go bye-bye just "on principle" so they stay "American" forever and just fade/die away so we can have a warm fuzzy while thinking about Buicks of yesteryear drowning in our beers.

I prefer a more proactive and radical approach. And that means more GMDAT cars here. And not all as Chevrolets. Especially not as redundant Chevrolets like in Canada with the Epica/Malibu and Cobalt/Optra. Thankfully the rumors point to a Cobalt-Optra "merging" down the line.

[unkillsam]

Originally Posted by 1999 White C5 Coupe

Some of the profits may end-up with the home country, but the jobs, technical expertise, investment in the home country, spin-off business to the home country suppliers, etc. etc. etc. goes offshore.

At least Chevrolet still tries to make us think they are working for the USA with their "American Revolution" advertisements (especially for the vehicles built in Asia, Canada, or Mexico).

Silverado, Malibu, Cobalt, Suburban, Tahoe, Trailblazer are all made in America for the most part.

Yes HHR and Aveo are made in Mexico and Korea respectively.

Impala is made in Canada but I don't count that against GM.

So yes, most chevrolet's are still made in America.

[nascarnate326]

Originally Posted by windvale

I'll take the one on the right...

damn, beat me too it.