[Butta]

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.

Full Article Here

Hehehe....

 

[tgagneguam]

Cheers to capitalism and competition! Anything that causes problems for Hyundai/Kia is OK by me...

 

[spartandiver]

Yes, this is very big and exciting news here inSeoul. I went out for a few drinks last night and even the waitresses were talking about it (as well as the recent impeachment of President Roh Moohyun).

 

[gmwsag]

Daewoo can do it.....
Daewoo was so unsuccessful during their last few years in the U.S. They planned an SUV I actually sat in, but it looks like it never came as well as a new Leganza sedan, that was expected to be larger. Daewoo had a lot planned but people weren't buying their cars. I think to rebadge them as a Suzuki or Chevrolet will work because people are 'more familiar' with these nameplates, such as Chevrolet and will buy Daewoo's-rebadged vehicles as Chevy. Such as the Aveo.....I really do hope that Chevy can get another spawned hit from Daewoo....

 

[GroundedZ]

It's working! GM's stake in Daewoo is paying off!

They may not be able to beat Hyundai and Kia - but they are going to slow them both down a little - enough to be competitive again!

Kudos to GM-DAT!!

 

[Butz]

Great news.. Fantastic.. Daewoo is coming back

It had every one's concern

 

[paul8488]

i remember hearing that GM was interested in acquiring daewoo a few years back... thouhg "wow, what a horrible idea!". now it looks like it may not have been such a bad idea. at least they didn't just spin off another GM division. goes to show once again... i don'thave a forking clue how this industry works!