GM Daewoo expansion threatens rival auto makers
SEOUL - Samsung Securities Co said on Friday that a recent move by South Korea's No 3 car maker to expand its business in the domestic market will threaten the market share of other auto makers.
The analysis follows an announcement on Thursday by GM Daewoo Auto & Technology Co that it will spend 1.74 trillion won (US$1.49 billion) over the next two years to produce new luxury sedans, sports utility vehicles and diesel engine models.
The car maker's investment plan will inevitably lead to a fall in the market shares of domestic market leader Hyundai Motor Co and runner-up Kia Motors Corp, the securities company predicted.
Hyundai Motor and Kia Motors, the mainstay auto makers of Hyundai Motor Group, accounted for 47.4 percent and 23.8 percent of the local market in sales last year, according to industry statistics. GM Daewoo held a 10.3-percent market share.
The expected market share decline of the two largest auto manufacturers will also pull down their stock value, Samsung Securities said.
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SEOUL - Samsung Securities Co said on Friday that a recent move by South Korea's No 3 car maker to expand its business in the domestic market will threaten the market share of other auto makers.
The analysis follows an announcement on Thursday by GM Daewoo Auto & Technology Co that it will spend 1.74 trillion won (US$1.49 billion) over the next two years to produce new luxury sedans, sports utility vehicles and diesel engine models.
The car maker's investment plan will inevitably lead to a fall in the market shares of domestic market leader Hyundai Motor Co and runner-up Kia Motors Corp, the securities company predicted.
Hyundai Motor and Kia Motors, the mainstay auto makers of Hyundai Motor Group, accounted for 47.4 percent and 23.8 percent of the local market in sales last year, according to industry statistics. GM Daewoo held a 10.3-percent market share.
The expected market share decline of the two largest auto manufacturers will also pull down their stock value, Samsung Securities said.
Full Article Here
Hehehe....