Autoblog

REPORT: GM ups its ante in GM Daewoo

Jonathon Ramsey — Sun, 25 Oct 2009 12:47:00 EST

GM Daewoo has four shareholders: GM, Korea Development Bank, Suzuki Motor Corporation, and Shanghai Automotive Industry Corporation. When GM Daewoo put out a rights issue, only one of the four took the bite: GM, which made it rain to the tune of $412 million and raised its stake from 50.9% to 70.1%.

Neither GM's move nor the non-interest of at least two other parties is surprising. SAIC is still gun shy about certain investments after the Ssangyong debacle, while Suzuki is more concerned with being courted by VW and the Kizashi's fate in the U.S. right now. It is GM that has every reason to strengthen its ties in Asia; after all, The General sold more cars in China last month than it did at home -- and with GM Daewoo.

Daewoo engineers small cars for GM, like Chevrolet's crucial acid test known as the Cruze, and last year, all told, GM Daewoo sold 1.9 million units. The financial infusion will be used for debts and to help the company's liquidity position.

[Source: Detroit News via GM Inside News]

REPORT: GM ups its ante in GM Daewoo originally appeared on Autoblog on Sun, 25 Oct 2009 12:47:00 EST. Please see our terms for use of feeds.

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Aim Higher: GM Daewoo reportedly suing TagAZ over fears they are planning to copy the Lacetti

Jonathon Ramsey — Wed, 23 Sep 2009 17:28:00 EST

Filed under: Budget, Sedan, Government/Legal, GM, Russia, South Korea, Daewoo

In what looks like a serious-but-probably-the-norm case of industrial espionage, General Motors' South Korean Daewoo division is reportedly alleging that the Russian automaker TagAZ has tried to copy its Lacetti sedan. Backing up those allegations are the arrests of two TagAZ engineers - former Daewoo employees who are said to have taken computer files from one company to the other. A third former Daewoo employee, an executive, left notes proclaiming his innocence and then committed suicide.

The two engineers reportedly copied at least 6,000 documents outlining designs and key technologies used in the Lacetti. That information, according to Daewoo, was used by TagAZ in the creation of a car it launched this past summer in Russia. South Korean prosecutors are still investigating the case, after which Daewoo will decide if it wants to pursue the matter for criminal damages. TagAZ hasn't said anything in response to the allegations. If nothing else, this could be good practice for GM - it will now know what to do if it happens at Opel...

[Source: Drive.com.au]

Aim Higher: GM Daewoo reportedly suing TagAZ over fears they are planning to copy the Lacetti originally appeared on Autoblog on Wed, 23 Sep 2009 17:28:00 EST. Please see our terms for use of feeds.

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REPORT: Chevrolet Aveo replacement postponed until 2011

Jeremy Korzeniewski — Sat, 23 May 2009 12:04:00 EST

Filed under: Budget, Chevrolet, GM, Earnings/Financials, South Korea

According to Reuters, Chevrolet's Aveo replacement has been postponed until January 2011 due to the well-publicized financial troubles at General Motors and its Korean subsidiary, Daewoo. Previously, the Aveo's replacement, codenamed T300, had been expected to bow in April of 2010.

Over the first four months of 2009, Daewoo has reported a whopping 44.5-percent decline in total vehicle sales, which comes as particularly bad news for The General since the Korean automaker accounts for a quarter of GM's total production. Much of that slumping production is being lost to rivals like Hyundai and Kia in oh-so-important emerging market of China, where Daewoo's sales dropped by 3.2-percent even in the face of an expanding market.

In effort to keep the doors open in the face of such heavy losses, GM Daewoo is reportedly seeking additional loans from the Korea Development Bank after running through all $2 billion of its available credit lines. We hope they work it out... suffice it to say that the Aveo's replacement can't come soon enough.

[Source: Reuters]

REPORT: Chevrolet Aveo replacement postponed until 2011 originally appeared on Autoblog on Sat, 23 May 2009 12:04:00 EST. Please see our terms for use of feeds.

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Vauxhall sans Opel could reallign with GM Daewoo, Holden

Noah Joseph — Sun, 03 May 2009 16:09:00 EST

Filed under: Chevrolet, GM, Holden, Opel, Vauxhall, South Korea, Daewoo

Chevrolet Aveo, a.k.a Chevrolet Kalos/Daewoo Gentra/Holden Barina/Pontiac Wave - Click above for a high-res image gallery

Eyebrows raised at reports that General Motors could hold on to its British subsidiary Vauxhall even if - or, more likely, when - its German counterpart Opel would leave the family. With the model ranges of the two European GM divisions intertwined, a Vauxhall without Opel would seem like an empty shell. New reports suggest, however, that instead of re-plastering Opels with the griffin badge, the British marque could instead continue operations under GM ownership by importing products made by GM Daewoo Auto & Technology.

The restructuring of Vauxhall would also likely call for greater cooperation with GM Daewoo's neighbor to the south, Holden, which otherwise stands to lose significant revenues from the disintegration of GM's global operations, with Vauxhall and Pontiac having accounted for nearly half the production of its VE Commodore, sold in the UK as the Vauxhall VXR8 and in the United States as the Pontiac G8. Holden, for its part, also recently replaced many of its Opel-based products with rebadged GM Daewoo models. In the likely absence of Opel, the General's assets in England, Australia and Korea would likely end up cooperating more closely. However with Daewoos already on the European market as Chevrolets, the realignment could effectively be the end of the bowtie in Europe.

Gallery: 2008 Chevy Aveo 5-door (EU)

[Source: Autocar]

Vauxhall sans Opel could reallign with GM Daewoo, Holden originally appeared on Autoblog on Sun, 03 May 2009 16:09:00 EST. Please see our terms for use of feeds.

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Aveo production hung up by supplier

Dan Roth — Fri, 18 Jul 2008 14:32:00 EST

Filed under: Etc., Government/Legal, Plants/Manufacturing, GM

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]

Aveo production hung up by supplier originally appeared on Autoblog on Fri, 18 Jul 2008 14:32:00 EST. Please see our terms for use of feeds.

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Spy Shots: GM's 7-passenger global people mover

Jonathon Ramsey — Fri, 18 Apr 2008 15:58:00 EST

Filed under: Spy Photos, Minivan/Van, GM, Opel

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]

Spy Shots: GM's 7-passenger global people mover originally appeared on Autoblog on Fri, 18 Apr 2008 15:58:00 EST. Please see our terms for use of feeds.

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GM's Korean outfit to get $3.2 billion investment

Frank Filipponio — Mon, 23 Apr 2007 15:33:00 EST

Filed under: Plants/Manufacturing, GM, Earnings/Financials

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]

GM's Korean outfit to get $3.2 billion investment originally appeared on Autoblog on Mon, 23 Apr 2007 15:33:00 EST. Please see our terms for use of feeds.

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Seoul Motor Show: GM Daewoo shows off L4X sedan

Alex Nunez — Sat, 07 Apr 2007 13:07:00 EST

Filed under: Sedan, GM, Misc. Auto Shows

Click image for photo gallery

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]

Gallery: GM Daewoo L4X

Continue reading Seoul Motor Show: GM Daewoo shows off L4X sedan

Seoul Motor Show: GM Daewoo shows off L4X sedan originally appeared on Autoblog on Sat, 07 Apr 2007 13:07:00 EST. Please see our terms for use of feeds.

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GM Daewoo investing another $3.2 billion

Sam Abuelsamid — Tue, 27 Mar 2007 18:58:00 EST

Filed under: GM

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]

GM Daewoo investing another $3.2 billion originally appeared on Autoblog on Tue, 27 Mar 2007 18:58:00 EST. Please see our terms for use of feeds.

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Hyunda, Kia roll back 2006 sales target

Frank Filipponio — Thu, 12 Oct 2006 16:28:00 EST

Filed under: Hyundai, Kia, Earnings/Financials

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]

Hyunda, Kia roll back 2006 sales target originally appeared on Autoblog on Thu, 12 Oct 2006 16:28:00 EST. Please see our terms for use of feeds.

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Photos aplenty of GM Daewoo Winstorm

Joel Arellano — Wed, 21 Jun 2006 09:08:00 EST

Filed under: Spy Photos, SUV, Geneva Motor Show, GM

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]

Photos aplenty of GM Daewoo Winstorm originally appeared on Autoblog on Wed, 21 Jun 2006 09:08:00 EST. Please see our terms for use of feeds.

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Adios Aerio! Next Forenza has your number

John Neff — Sun, 04 Jun 2006 17:59:00 EST

Filed under: Budget, Hatchback, Suzuki

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]

Adios Aerio! Next Forenza has your number originally appeared on Autoblog on Sun, 04 Jun 2006 17:59:00 EST. Please see our terms for use of feeds.

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