• Jul 28th 2007 at 10:33AM
  • 24
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]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 8 Years Ago
      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.
        • 8 Years Ago
        I hope that $6 billion gets us something better than the Aveo.
      • 8 Years Ago
      Guys, dont be so dramatic. It has NEVER been profitable enough to produce subcompacts here in the US, the return for each dollar is not high enough. GM knows that, I know that, and everyone should be able to understand that. I am fine if they can provide a car that costs 9K out the door (like the Aveo). As long as they keep a car like the Cobalt that is a step up (compact class) and made in the USA.

      As far as a car being made in Canada, lets face it. The Canadian economy is basically a child of the American economy. We share so much that what is good for Canada is almost always good for the USA, and vise-versa.

      Further, Asian and European brands have been spreading throughout the world for years, and its about time that GM did it too. For too long GM has been stuck in the US limited by unfair trade regulations that favored imports.The US market is FLOODED with competition, they need to get out to the rest of the world. Also, just becuase this is happening does not make GM any less of an American company. They are still located in Detroit, Michigan, USA, and they are still controlled by American shareholders, and they still have tons of employees and produce cars in the USA more so than all the import companies.
        • 8 Years Ago
        And it's about to get even more flooded with the Chinese and some of the French and Italian coming back.

        And if I remember correctly, Tata (India) or some Malaysian company was also interested in selling cars in your market.

        I'm with the CAW's leader on this.

        As for my interest in small cars, even if we have kids our old car proved us that you don't need anything bigger than a compact (Mazda 3, Ford Focus and all).

        And thank God automakers are starting to Europeanize themselves (Europe digs extensively equipped (at least they dig the possibility of extensively equipping them) B segment cars), because I sure wouldn't buy that ol' rebadged Kia Ford had for sale in the 90's.
      • 8 Years Ago
      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....
        • 8 Years Ago
        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. :
      • 8 Years Ago
      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.

      • 8 Years Ago
      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.
        • 8 Years Ago
        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.
      • 8 Years Ago
      Go to bed AlexP.
        • 8 Years Ago
        That's what I did about an hour later.
      • 8 Years Ago
      I bet one factor that is starting to weigh heavily on whether to invest and produce in Canada is the US/CND $ exchange rate. The US$ has taken a massive dump, but most major asian currencies have dumped alongside it relative to the Canadian $ and the Euro. Over time this will take a toll on the Canadian and Euro economies, I think, as their domestically produced products will tend to be too expensive to buy in the other major markets.
      • 8 Years Ago
      that groove is nice
      • 8 Years Ago
      Hah you won't be with her 2 years from now kiddo
        • 8 Years Ago
        I've been with her for over a year, this isn't a kiddie thing.
      • 8 Years Ago
      ... We don't build Suzukis you douchebag.
        • 8 Years Ago
        Oh, correct... Pardon me.

        Retarded thing is, I actually read the XL-7's review about 3 days ago.
        • 8 Years Ago
        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....
      • 8 Years Ago
      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.
      • 8 Years Ago
      "They also ae only in a business to make a profit!"

      Ahem! is this in apposed to those other charity car makers?
    • Load More Comments
    Share This Photo X