Filed under: Etc., Government/Legal, Plants/Manufacturing, GM
Aveo production hung up by supplier
GM Daewoo has been forced to idle its plant in Bupyeong, South Korea due to strong-arm tactics by tire OEMs Hankook and Kumho. The Bupyeong plant produces the vehicle we know and ummm... tolerate as the Chevrolet Aveo, and possibly (unfortunately) soon as the Pontiac G3. Rather than pony up the 12% price increases that the tire suppliers want, GM wants a preliminary injunction to force them to end the supply cutoff. For their part, Hankook and Kumho cite higher raw materials costs for their increased monetary demands, even after ratcheting up prices by 5.5% in March. The work stoppage isn't expected to be protracted, so before long, we'll see these little carlets rolling off the line again. GM could always call the tiremakers' bluffs and switch suppliers. We're sure Goodyear or Bridgestone would be interested in talking.
[Source: The Car Blogger]
Reader Comments (Page 1 of 1)
Torrent 1:20PM (7/19/2008)
Cancel. The. Aveo.
Replace it with the Cobalt, and make the Cruze a step up from the Cobalt.
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tankd0g 1:33PM (7/19/2008)
Geeze, you'd think tires were made from oil or something.
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tankd0g 1:36PM (7/19/2008)
If Bridgestone or Goodyear could match the price of Korean tires I wouldn't be driving around on Kumho Ecstas.
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PandaBear 4:42PM (7/20/2008)
Just buy from the Chinese. I am sure they are happy to take a 12% discount from the Koreans.
Richard S. 12:07AM (7/20/2008)
What about Chines tires? Surely they will be cheaper than Korean ones. Any Chinese tire brand out there? Redstone? :)
Don 10:40PM (7/19/2008)
Damn. And here I was hoping this strike would make the Aveo go away forever.
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Josh 10:32AM (7/21/2008)
Had an aveo for a rental car this weekend. My wife and I can't decided if it is the worst rental car we've ever had, or just a dismal second. We rent a car for about 4 days per month for our jobs and this was the first and last time we will ever get an Aveo.
Is there any way to actually get the rental car agencies to listen when I say, "I want a foreign car. Do not give me an american car"?
I have had a Kia something, a Daewooooo something, some Mazda's, a couple of Fords, etc. The usual run of rental cars. The Aveo was easily the poorest car of them all... yet it was also the newest. It had 140 miles on it when we picked it up.
BTW - the other most craptastic car we've rented was a Chevy Classic/Malibu/whatever. The Dodge Charger was surprising better than I had anticipated though.
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