
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 @ Jul 19th 2008 1:20PM
Cancel. The. Aveo.
Replace it with the Cobalt, and make the Cruze a step up from the Cobalt.
tankd0g @ Jul 19th 2008 1:33PM
Geeze, you'd think tires were made from oil or something.
tankd0g @ Jul 19th 2008 1:36PM
If Bridgestone or Goodyear could match the price of Korean tires I wouldn't be driving around on Kumho Ecstas.
PandaBear @ Jul 20th 2008 4:42PM
Just buy from the Chinese. I am sure they are happy to take a 12% discount from the Koreans.
Richard S. @ Jul 20th 2008 12:07AM
What about Chines tires? Surely they will be cheaper than Korean ones. Any Chinese tire brand out there? Redstone? :)
Don @ Jul 19th 2008 10:40PM
Damn. And here I was hoping this strike would make the Aveo go away forever.
Josh @ Jul 21st 2008 10:32AM
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.