Here's what was missed in the news about General Motors' distressed brands and sluggish U.S. sales: While GM sliced third-quarter North American production by 100,000 units, it increased Asian production forecasts by 100,000 units.
GM sales in Europe, Asia, Africa and South America have grown this year. And its engine for growth is Chevrolet, the venerable high-volume brand that has enjoyed a rebirth overseas.
While GM is trimming its product lineup for slow-growth brands such as Buick and Pontiac, it has expanded the Chevrolet line. The automaker has rebranded Daewoo-built cars and trucks as Chevrolets, and those vehicles are finding a market overseas.
From January through April, Chevrolet sold nearly 1.4 million vehicles worldwide, a year-to-year increase of 8.2 percent. GM Daewoo Auto & Technology Co.
Daewoo Motor Co. Ltd. was a bargain for GM and other investors. In 2002, GM spent just $250 million to take over the principal assets of the bankrupt Korean automaker.
Since then GM already has spent $1 billion to beef up Daewoo's product development and has earmarked an additional $2 billion for that purpose.
GM Daewoo expanded its engineering and design staffs and has 1,800 engineers and 80 designers.
With its bigger engineering staff, the Korean automaker will help GM's U.S. engineers redesign the next-generation Saturn Vue and Chevrolet Equinox SUVs. GM Daewoo also will have a chance to engineer GM's Gamma architecture, which is the basis for the Opel Corsa.
Here's how Chevrolet is doing in each of its major markets:
>> In Europe, Chevrolet sales rose 24.5 percent through April. The Chevy Kalos and Aveo are enjoying especially heavy demand in Poland, Russia and the Ukraine - price-sensitive markets that value low-priced transportation.
The brand also has found a niche in more prosperous western Europe. Everything is growing fast, and it's all due to Chevy's startup in those places.
>> In the United States, sales of the Chevrolet Aveo are up 56.1 percent through May. Next, GM might import a sport wagon based on the Daewoo S3X, a small sport wagon concept introduced at the 2004 Paris auto show.
>> In South America, Africa and the Middle East, Chevrolet sales rose 19.2 percent through April. And GM Daewoo is doing more than its share.GM predicts Daewoo sales will rise at least 50 percent this year. GM Daewoo is the driver, It has been incredibly successful for us.
>> In Asia, Chevrolet is using Daewoo-designed vehicles to fuel its expansion. GM China assembles and sells two cars - the Spark and Epica - based on Daewoo vehicles. Now GM China is building a network of 150 Chevrolet dealerships to sell these and other vehicles.
Meanwhile, GM wants to purchase an assembly plant in India to produce a minicar based on the Daewoo Matiz.
GM insiders brag that Daewoo is their version of Hyundai Motor Co. - an automaker with a relentless ambition to expand. Before GM acquired the company, Daewoo ran into trouble when it expanded too quickly.
But now GM hopes to exploit that corporate culture to compete in the world's fastest-growing markets.
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-----The orginal Mr.Goodwrench on the JBO since 11/99-----
And I still don't like their cars.. Daewoo's are garbage...
Dark blue 2002 Z24, 2.4 Ltr.
I guess this is great news if you're a stockholder...
But for the folks on the North American production floor, not so great.
I don't know whether to be happy or sad...
Just so long as management doesn't try to sell us a Daewoo Camaro or something...
George (geozinger)
'95 Sunfire GT-my second Pontiac from Hell!
'97 Cavy Beater-still running like a champ!
'04 Sunfire - my kid's car, but I get the bills...
'09 Pontiac G6 - Sport Package 1
