Autoblog

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]

Brenda Priddy & Co have brought us the first glimpse of GM's upcoming 7-seat MPV. Based on the Delta global platform, it is said to be about the same size as the Mazda5. The person hauler is apparently the work of GM Daewoo (GMDAT), with R&D work carried out in Bupyeong, South Korea.

The vehicle will be offered for numerous GM brands around the world, though no one knows yet exactly which ones will get it. Chevy is certain, with Daewoo and Opel posed as logical outlets. Priddy guesses that this could even be the replacement for the Opel Zafira. It will most likely be built in the Hamtramck, Michigan plant. True, it's only a taped-up mule and there are parts missing – like the front end – but we hope GM doesn't go to far down the bland route in order to appeal to the widest number of global villagers.

[Source: Winding Road]

We knew that the new GM global small car platform was important to the embattled carmaker, but now we know just how valuable GM thinks it is. The new Gamma is apparently worth quite a bit to the future of GM -- $3.2 billion to be exact. That's how much GM has pledged to invest in GM Daewoo Auto & Technology Co. over the next two years. The money will primarily go towards "product and powertrain," according to GM CFO Fritz Henderson. He made the announcement at a press conference last week in Seoul. Not only does it show the importance of the Gamma platform, but it also shows the increased importance of GM's Korean development operations.

Besides the Gamma, GM Daewoo will also take on new R&D responsibilities, with a new center planned for the next two to three years. Diesel engines and a new six-speed transmission are also coming from this Korean facility. The Gamma cars, themselves, should start production in late 2009, with a range of gas and diesel engines displacing 1.2 to 1.8 liters. The vast majority of these products should be sold outside of Korea.

[Source: Automotive News, sub req]

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Many thousands of miles away from New York, another auto show is getting into full swing. We're talking about the Seoul Motor Show, where the Koreans are getting an eyeful of some pretty nifty stuff. Like what, you ask? Well, like this rebadged Holden Caprice/Statesman, which bowed as the Daewoo L4X sedan. The car on display is the "concept" version of the vehicle that'll go on sale in Korea at a later date.

GM's ubiquitous 3.6-liter V6 provides 258 horses with which to propel the rear-wheel-drive long-wheelbase sedan. It's being positioned as a luxury/executive vehicle complete with niceties such as navigation with TV functionality, heated rear seats with massage, and privacy rollers and blinds for the backseat passengers. We're all for having a variation of the Caprice and/or Statesman show up on these shores badged as a Buick. Unfortunately, Buick dealers, in their infinite wisdom, appear to disagree. We will see a Buick version of the car in China (we're guessing it'll debut at Shanghai later this month), at which point we'll complain loudly about it not being here.

[Source: GM Daewoo]

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]

Citing summer strikes and weak domestic demand, Hyundai announced that it has cut its 2006 sales projections by up to 6% for Hyundai and Kia. This despite the fact that September sales were up 23% compared to August figures. Hyundai vice chairman and CEO Kim Dong-jin said that he expects 2007 sales to rebound, but didn't provide additional information. Kim explained that the group slightly changed its business plan when they experienced strikes during the summer: "Late last year, we set our 2006 production target at 4.1 million. However, we reduced our production or sales volume down to 3.85 million because of labor disputes."

Analysts have said they expect Hyundai to achieve higher sales thanks to lower oil prices next year, despite weak domestic demand during the economic slowdown in Asia's third-largest economy, and because of consumers' possible negative reaction to North Korea's nuclear tests. "In 2007, sales are expected to be slightly higher than this year, but I don't see a sharp turnaround as the global economy may deteriorate," said CJ Investment auto analyst, Choi Dae-sik.

In related news, fellow Korean automaker GM Daewoo said it expected growth to slow from 38 percent so far this year, to 12.5 percent next year, as the impact of new product launches wears off.

[Source: Reuters]

Sibling site Autoblog en Espanol was able to obtain more shots of the Winstorm, the first SUV by GM Korean subsidiary, Daewoo. As previously posted, the Winstorm will be sold primarily in the Asian and European markets through GM's Chevrolet and Holden brands. While no definitive date has been announced for when the SUV goes on sale in Asia, Europe will be receiving its first units marketed as the Chevrolet Captiva this September. Alas, this handsome SUV is not bound for the States and no plans have been made to buy it an interncontinental ticket.

Related:
GM Daewoo's 'Winstorm' SUV prepares to sweep SUV market
Geneva Motor Show: Chevrolet releases Captiva crossover
Chevy Captiva won't come to the U.S.

[Source: GM-Daewoo via translated Autoblog en Espanol]

Who would have guessed a few years ago that Suzuki would be in the midst of international renaissance? While some locales around the world already have a high opinion of the Japanese company's products, the North American market has suffered through one forgettable Suzuki after another. That's because most of them have been rebadged models from General Motors. The current Forenza, for instance, is GM-Daewoo model built in Korea and rebadged for North American consumption.

Now that GM has sold its stake in Suzuki the automaker has gotten down to business developing its own products, and the next generation Forenza is shaping up to be a contender. Developed entirely by Suzuki and set to be built in Japan, the Forenza's replacement will take the lead as Suzuki's new entry level model with a sticker around $15K. That means the unloved Aerio five-door hatch and four-door sedan will be nixed. No worries though, as Suzuki is planning on 100,000 sales annually for the next Forenza.

We're not quite sure what this means for the Swift's return to U.S. shores. Hopefully the Forenza's entry-level status won't crowd out the hot subcompact from Suzuki's North American lineup.

[Source: Inside Line]