GM to Invest $6 Billion in Daewoo Unit

[Ming]

GM to invest US$6b in Daewoo unit
25 July 2007
www.channelnewsasia.com

DETROIT, Michigan : General Motors plans to invest more than US$6 billion in its Daewoo Automotive Technology subsidiary (GM DAT) in South Korea over the next four years, a GM executive said Tuesday.

Michael Grimaldi, president and chief executive of GM DAT, which is based near Seoul, said the giant automaker considers Daewoo one of its major export platforms now and in the future.

"Strategically it's important for GM," Grimaldi told a meeting of the Detroit Society of Automotive Analysts.

GM has given DAT the task of engineering new small vehicles in the mini and subcompact class, Grimaldi said.

"We have tremendous strength at GM Daewoo. We're taking business away from Hyundai and Kia. Our export business is huge. We are GM's major export base now for many of the developing countries," he said.

"We're investing more resources in both design as well as our engineering organisation. We're looking forward to the introduction of our new mini and small cars that will come to markets around the world in the next several years," he said.

"We do believe that in combination with General Motors, GM Daewoo is contributing to GM's growth and going forward will continue to play an increasing strategic role."

GM Daewoo now operates an engineering centre in Inchon, Korea, which will expand to accommodate more than 2,500 engineers and will open a new proving ground and test centre near its Seoul area headquarters, Grimaldi added.

Source: http://www.channelnewsasia.com/stori...290197/1/.html

[Hitman1970]

Great. Now give GM a world class small car to sell in the U.S. Something along the lines of Euro Focus would be great.

[steve333]

They are going to have to do better than the Aveo thats for sure. Very underwhelming and the interior smells like a chemical factory.

[ronald mcretard]

Good news. I hope they have some sort of plan to manufacture small cars in the US eventually.

[rueben44]

Good move that they should have done two years ago but better late then never.

[GM-Joe]

Yes, it sounds good. But also, I think I like the Winstorm the most out of the family of small cuv's. I saw a Saturn Vue/Opel Antara a few days ago and I did not care for it much. I was happy to see a happy new owner, but it more or less looked like a puffy and round station wagon; like a glitzy Japanese cuv.

[racy]

Originally Posted by Ming

"We have tremendous strength at GM Daewoo. We're taking business away from Hyundai and Kia. Our export business is huge. We are GM's major export base now for many of the developing countries," he said.

So its come to this. GM gets excited about taking business away from Hyundai and Kia. Its like an aged and worn out Mike Tyson bragging about beating up a kindergartener.

GM needs to be worried about the business being lost to Toyota. Has GM's motto become "If you can't beat 'em, drop your standards and aim for the smaller guy" ?

[asim]

Yay. We always hear about GM investing in Daewoo, and it is always good!

[Reed35]

I agree. Why chase the small business when the big business (Toyota) is stealing your customers. It just doesn't make sense...

[Tequilujan]

I think this is good. Taking business away from kia and hyundai is good, that means theyre gaining market share in various other markets around the world. losing ground here in the US is a given, with all the new products, everything is going to lead to a decrease in market share.
They should be half that here in the US though.

[mbukukanyau]

^^^ We get the point
Its good GM is now positioned with Kia and Hyundai aganist Toyota. What it means is that They can undercut Toyota, while still playing with them at the top level.
The next small cars, are going to make or brake GM. I think its time GM tranfered some Engine Technology to Korea, though hyundai will get it, they will kill accent in the process

[redimpss5]

Korea has been so bad, but now they may be kinda good. Sounds like Ford. I rather buy a Ford than a Daehoo thing!!

[Commodore]

Originally Posted by racy

So its come to this. GM gets excited about taking business away from Hyundai and Kia. Its like an aged and worn out Mike Tyson bragging about beating up a kindergartener.

GM needs to be worried about the business being lost to Toyota. Has GM's motto become "If you can't beat 'em, drop your standards and aim for the smaller guy" ?

Hyundai is a bigger threat in the future than Toyota is. Toy is short term, I think it'll start to lose its reputation as it builds more cars like the Tundra and when people finally wake up and see that Hybrids are just a car people drive for the 'green' image. Maybe they'll move away to diesels or something..all the carmakers seem to be developing them. Back to Hyundai, even the import humpers & they're magazines have started to drool over Hyundai and how they've turned their image around and are building oh so awesome cars (which is BS in most ways). Honda is also a potential threat because they're quietly growing (no news stories about them taking away the worlds #1 stop from a company thats held it for the past 3/4 of a century). To sum it up: Toy has nowhere to go but down.

[mgescuro]

Let's see if Daewoo can put the $6B over 4 years to better use than Cadillac did.

I think this is probably one of the smartest moves GM has ever made.

[Butz]

I don't know if I should interpret this as good news or bad news.