GM Daewoo investing another $3.2 billion
Prior to General Motors buying a controlling interest in South Korea's Daewoo Motors in 2002, negotiations dragged on forever as GM apparently wanted to wait until the last possible moment to get the best price while still having something worth rescuing. Since then, GM Daewoo has made a pretty decent recovery, with sales on the rise in many markets around the world, including the US.
GM Daewoo announced today that it will invest another $3.2 billion over the next few years in updated products and possibly expanding production capacity. Daewoo sales are projected to increase by about 20 percent this year, thanks to increased sales in Europe and North America with models like the Chevy Aveo and its many global variants. Outside of South Korea, most Daewoos are branded as Chevrolets, as well as Pontiacs, Suzukis and Holdens.
[Source: Automotive News]
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Reader Comments (Page 1 of 1)
Wren 10:38PM (3/27/2007)
Good. Cherrypicking Daewoo Motor was one of the smartest things GM did lately. (Others: recruiting Robert Lutz, importing Holdens from Australia, and fending off Kirk Kerkorian.)
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far jr 9:07PM (3/27/2007)
Daewoo is one of the smarter decisions GM has made as a "Global" company.
Now Domestic fans will bash GM as a sellout for allowing so many cars to be built outside US borders.
Meanwhile import fans will use this post as ammo to pronounce Toyotas and Hondas as "Just as American as GM" due to the fact that they build so many cars outside the US borders.
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Gerry 5:40PM (3/28/2007)
If GM can invest 3.2 BILLION in a Korean company that employs Koreans, then, as the saying goes "What's good for GM is good for America", I'll invest my tiny sum of 35 to 40 grand in a foriegn company as well. This country could sure use all the money GM has and is investing in China as well.
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Richard 8:42AM (3/28/2007)
Wren wrote (No. 3) ".... Cherrypicking Daewoo Motor was one of the smartest things GM did lately. ..."
Daewoo was not a "cherry" when GM "picked" it. The company was in dire straits. GM turned Daewoo around and made a great success of it.
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Don 4:23PM (3/28/2007)
Smart thinking. Gotta have a company with small car expertise under your wing. This will pay off for GM in the long run.
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