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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/skorea_gm_chevrolet.html?.v=2
 

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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?
 

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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.
 

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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!:lmao:
 

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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.
 

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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?
 

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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.
 

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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!:lmao:
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.
 

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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.
 

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Good luck to GM with this one. :lmao: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.
 

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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
 

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

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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.
 

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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.
 

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If Daewoo are to produce a Daewoo-esque look and a Opel-esque on the same platform going forward it may work. But would you then have Chev selling the Daewoo version everywhere except South Korea, and selling the Opel version there? Perhaps there will be a Chev-ish version sold everywhere (except OZ & NZ) as a Chev, and the upmarket design gets sold as the various other brands, Opel, Holden, Daewoo etc. Although that would put Daewoo upmarket in design to Chev in South Korea, maybe suit the nationalistic feelings but seems a tad strange.
 

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I am IN South Korea right now, Okpo specifically, on Geoji island as the Daewoo Shipbuilding and Marine Engineering shipyards. I have seen a couple of Chevrolet badged products over here (and one 90's model Escalade that looked like Gulliver among the Lilliputians going down the road...). The Korean's do not buy Japanese, I have seen Kia, Hyundai, and Daewoo en masse, but not a single Toyohondassan, and of American Badged cars only maybe four or five Chevrolet's, the one Cadillac, and not a single Ford or Dodge badged product. I did see one BMW and a Mercedes Benz, but that was it for European cars. Point is, if American product is going to make an inroad here, it would be GM an Chevrolet... they already have the closest thing to an outside presence I've seen.
 

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New Chevy's will be shared. The next Cobalt and Malibu will have European/Daewoo counterparts. So it makes sense to just badge them all Chevy in every market.

Don't be surprised when Chevy shows up in Australia too. Holden will basically sell Opel cars + the VE/WM (and variants of that).

Holden, Opel, Vauxhaul, Saturn, Buick, Pontiac, GMC will remain local market brands sharing cars.

The biggest sharing will be Opel, Vauxhaul, Saturn, Holden (not including VE/WM line). Where the cars will be identical except badging (example Astra). Buick in China will share with Buick in the US. Pontiac and Holden will share the VE (but nothing else, the rest of the Holden's are Opels). GMC will mostly be what it is today.



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Don't be surprised when Chevy shows up in Australia too. Holden will basically sell Opel cars + the VE/WM (and variants of that).

Holden, Opel, Vauxhaul, Saturn, Buick, Pontiac, GMC will remain local market brands sharing cars.

The biggest sharing will be Opel, Vauxhaul, Saturn, Holden (not including VE/WM line). Where the cars will be identical except badging (example Astra). Buick in China will share with Buick in the US. Pontiac and Holden will share the VE (but nothing else, the rest of the Holden's are Opels). GMC will mostly be what it is today.
Apart from Camaros (and possibly a future Corvette) nothing is ever likely to be badged Chevrolet in Australia. Chevrolet (unlike Cadillac) has a market awareness here, but it's for muscelcars. They would kill the market for the Camaro and the 'Vette if they tried to sell Daewoos. Camaros were mooted to be sold as HSVs, now it looks like they're going to channelize them into GM premium dealers with Cadillac, Saab and Hummer. Also, as the Barina is a respectable seller at present and likely to get better as the upgrades arrive, same with the Epica and the next Viva, they will not waste money trying to reestablish them under another brand. The Colorado name is only changing because Isuzu owns Rodeo - it's still being sold as a Holden.

Holden and the lion/globe badge is the third best known brand in Australia after QANTAS and the national telco with something like 93% recognition. They won't change that for the bowtie on mainstream cars; which is so meaningless Holden used the bowtie taillights off the Chev Lumina M-E cars on 'Lumina Commodores' sold here as an options pack, and people who bought them had no idea that was even another brand's badge. (Lumina as a model were never sold here at all).

I don't think Korean-made Daewoos will be sold as Chevolets, either - more likely you might see selected Chevs imported there. As noted, Koreans are just as nationalistic as the Japanese. Worst insult you can make is to call a Korean Japanese. Tahoes and anything like the land behemoths you guys sell is simply way too large for Korean roads. The Daewoo Statesman only comes with a V6, and will get the turbo four if the CHinese one does because big cars and traffic simply don't mix. Fuel economy is very important.
 

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I am IN South Korea right now, Okpo specifically, on Geoji island as the Daewoo Shipbuilding and Marine Engineering shipyards. I have seen a couple of Chevrolet badged products over here (and one 90's model Escalade that looked like Gulliver among the Lilliputians going down the road...). The Korean's do not buy Japanese, I have seen Kia, Hyundai, and Daewoo en masse, but not a single Toyohondassan, and of American Badged cars only maybe four or five Chevrolet's, the one Cadillac, and not a single Ford or Dodge badged product. I did see one BMW and a Mercedes Benz, but that was it for European cars. Point is, if American product is going to make an inroad here, it would be GM an Chevrolet... they already have the closest thing to an outside presence I've seen.
I too have spent a lot of time in Korea. Actually the Chevrolet brand has been around in Korea for a while now, and in fact because of one particular product branded as a Chevy being imported there. It receives a high profile presence as a 'limousine to the stars'. Believe it or not, an importer has been bringing in 'Starcraft' Chevy vans to use as celebrity travel vans whenever they pull up and make an appearance. You also see the Starcraft vans in various highly popular TV drama shows. Hardly an intended marketing presence, but perhaps the Chevy brand might be recieving unintended recognition.

Another thing I noticed, many GM Daewoo brand owners find ways to convert their GM Daewoo products to their Chevy nameplate. They often have to replace a few badges/nameplates/ grill insert, done. This is easily accomplished because parts are already sourced in Korea for their export versions. For instance, you'd see a Daewoo matiz converted to Chevy spark, or Daewoo Tosca converted to Chevy epica, Daewoo winstorm- Chevy captiva.

Also, many Chevy's are seen in the country because some American Military bring their cars to Korea while they're based there. Seeing a Silverado in Seoul is quite a site, considering 6.50/gallon price tag for gas.

Perhaps people in Korea are yearning to want to have something different, because they're so sick of looking at the same old hyunday/kia/daewoo that is so prevalent. Keep in mind domestic market share in Korea is at least 85%
 
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