Have money, need growth: GM to invest $6b in Daewoo
GM has been rapidly expanding in countries outside the US, and South Korea-based Daewoo has been a major contributor to the company's growth in developing markets. GM is redoubling their commitment to Daewoo by investing $6 billion in the once bankrupt automaker over the next few years. President and chief executive of GM DAT Michael Grimaldi says the money will be used to expand design, engineering, and for new plants and products. Among the projects on the table are a mini car and a small car, which could mean that some form of the Beat, Trax, or Groove could be in the pipeline. With relatively low labor costs and a free trade agreement with the US, GM Daewoo could expand their role of providing low-cost economy cars to our shores, but with a Chevy badge.
[Source: Channel NewsAsia]
Reader Comments (Page 1 of 2)
AlexP 10:50AM (7/28/2007)
I just hope the triplets make it to Canada, my girlfriend is either getting the Beat (or whatever it will be once it goes into production) or the Mazda 2 when she gets her license in two years from now.
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Don 3:12PM (7/30/2007)
I hope that $6 billion gets us something better than the Aveo.
Chris 11:07AM (7/28/2007)
Hah you won't be with her 2 years from now kiddo
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AlexP 11:19AM (7/28/2007)
I've been with her for over a year, this isn't a kiddie thing.
nosmas 6:55AM (7/29/2007)
I beta-tested your girlfriend and she said she's leaving you next year.
Dave 11:18AM (7/28/2007)
Sounds like a smart move.
The North American market is shrinking. Cars today last longer, so fewer will sell.
GM needs to invest in brand equity across the globe.
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94 taurus owner 10:07PM (7/28/2007)
that groove is nice
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toledo 12:28PM (7/28/2007)
This is exactly why the union "Buy American" campaign doesn't resonate with me. If I buy a US built Toyota or Honda, I know that a good chunk of the profits will be invested in upgrades and new capacity right here in the USA. And I also know that I'm buying a Toyota or Honda made product. Chevy claims to be "an American Revolution", while selling Korean built Daewoos and Canadian built Suzukis as All American Chevys. Then GM invest $6 billion outside the US to sell us more! No thanks....
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alex 1:55PM (7/28/2007)
where the car is made isn't the only factor you should be thinking about. for example the big 3 employ more than 10x more people in R&D in michigan alone than the japanese companies do in the entire US. so just because a toyota is manufactured in the US doesn't make it an all american product by any means. for another example, my sister works for GM as a safety engineer on Daewoo cars. She works in Detroit, not Korea.
in the global economy things aren't as black and white as they used to be
Barney 6:35PM (7/28/2007)
"for example the big 3 employ more than 10x more people in R&D in michigan alone than the japanese companies do in the entire US."
Give them time Alex. They are newcomers and someday the "big" three will employ more people in their foreign branchs. It all balances out when "profit" is the name of the game.
AlexP 12:39PM (7/28/2007)
... We don't build Suzukis you douchebag.
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toledo 12:54PM (7/28/2007)
Aside from the juvenile comment....
When you get an unrestricted license and Mommy lets you take the new minicar she bought you out on the 401, cruise past the CAMI plant at Ingersoll. It's a joint venture between SUZUKI and GM. They build the XL7, Torrent and Equinox there. Before that product, it was the Chevy Tracker.
I'll accept your public apology in your next post, young man....
AlexP 1:28PM (7/28/2007)
Oh, correct... Pardon me.
Retarded thing is, I actually read the XL-7's review about 3 days ago.
RL 12:59PM (7/28/2007)
ahaha. AlexP how old are you, and how many relationships have you been in? Sorry, I know this is a car forum and not a relationship one but thats too funny.
Back to topic, I was under the impressions that most koreans consider daewoo the "fords" of korea...i.e unreliable...but this train of thought was many years ago. Perhaps daewoo has improved vastly like Hyundai/Kia has.
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AlexP 1:30PM (7/28/2007)
7, and this is probably the best one I've had... But moving on.
Pardon my attitude, I haven't slept for over 24 hours so...
Also, I do have a license, and I own a Pontiac G3/Wave.
roar 1:00PM (7/28/2007)
As soon as the labor/benefit structure in the U.S. is on a level playing field the investments will be made in the U.S. If you think the the imports are building plants in this country out of the goodness of their hearts then think again. They do it for the "Money." If the exchange rates/tax subsidies and labor enviroment change then they are out of here. GM/Ford, etc. have made many mistakes in the product and labor areas, today they are doing what they need to do so they survive.
roar
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Toledo Guy 1:07PM (7/28/2007)
Since the Big 3 and the UAW are in talks, wouldn't it be smart to say to Gettelfinger "Hey we've got $6 billion to invest in new small cars. We can invest it here, or we can invest it overseas. How can the UAW help make it cost effective to invest in the USA?"
I'm still waiting AlexP....
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AlexP 1:37PM (7/28/2007)
Except domestics rarely enjoy the financial burden of making small cars (subcompacts, primarily) in North America, the US, specifically.
I'm so tired right now. :\
aSHIRTandTIEguy 4:10PM (7/28/2007)
I see any website that allows the readers to blog simply ends up being a popularity contest between the participants and/or a forum to brag about their own status, ambitions, or personal property.
GM if you are reading! Consider this! GM, your corporation closed down the only car assembly plant here in Quebec. The Boisbrillant assembly plant which assembled the 1967 to 2002 Chevrolet Camaro and Pontiac Firebird, a car which was very emotional to Americans and was not even produced in their own country. Instead of continuing to keep the car in production past 2002 or retooling for another car GM claimed there was no more interest in the Camaro/Firebird and has been proven wrong with sales of the Mustang remaining stable. The same car is scheduled to re-enter production at a different plant in Canada, again! Canadians don’t drive V8’s or SUV’s. Petrol here is historically 15 to 25 % more expensive then in “Canada South.” :)
Instead of investing another 6 billion in another far off Asian market, assemble the car here. The Quebec car market which is comprised of approximately 70% of compact and sub-compact cars, and our market would be better suited for this car. Please consider re-opening the plant to produce that car domestically. It would reduce interest in those Gawdawful Corolla/Civics /Sentra Japanese boxes which are seen as benevolent, cleaner and "green", and reinvigorate domestic brand interest!
Plus here in Canada has national health care! ;)
roar is completely correct! Nissan sent production of the QX56 and Quest back to Nippon since it was cheaper to make it in the mother country! The Japanese are not angels! They also ae only in a business to make a profit!
Upon further reading. AlexP the Wave is not a “G3” in any way! You got real self-esteem problems if you want your Wave to be seen as part of the G5/G6/G8 Pontiac brand equity. It's like saying your Mini is a BMW when it's not or saying your Audi is not really just a VW! Really? Man your "serious gf" better not leave you cause it's gonna be hard to pick up your new gf in a "G3" since that car does not even exist!
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alex 4:20PM (7/28/2007)
a "far off asian country" you say? far off from where? from you, yeah it is far off. but from where these cars will be sold, it's not so far. sure gm may bring some of these cars to north america, but the primary destination for these cars are developing markets like india and china.
additionally, it's darn near impossible to make a sub-compact car in north america and have it be profitable. these are volume sellers and they have very small profit margins. ever notice how toyota makes the tundra (huge profit margin) in the US but not the yaris (not so huge profit margin). it's not by accident.