With Record Exports and Growing Domestic Market Share, GM Daewoo Looks Forward to Opening New Chapter
SEOUL, South Korea, Jan. 8 /Xinhua-PRNewswire/ -- GM Daewoo’s 2006 total exports of nearly 1.4 million units (CKD and CBU) set a new export record among all GM units. The company also enjoyed considerable success in the local Korean market.
With a strong second half (a record setting 15,149 units in December alone), GM Daewoo finished 2006 with a Korea market share of 10.7 percent, up from 9.2 percent in 2005. No other Korean manufacturer increased its market share in 2006. Unit sales increased 19.2 percent for the year versus an industry gain of just 2.7 percent.
Highlights for the year include that new products, Winstorm and Tosca, accounted for 37 percent of sales, while Matiz accounted for 31 percent. This compares to 2005, when Matiz represented 43 percent of total sales and marks a clear shift from predominantly mini and small cars to larger vehicles. In the important Intermediate segment, Tosca commanded a 12.4 percent share, compared to its predecessor, the Magnus’ 5.8 percent share in 2005.
The company’s first entry in the compact sport utility vehicle segment, earned a 20.4 percent share of the segment.
According to GM Daewoo President and CEO Michael A. Grimaldi, "The first four years of our company’s history were about building a solid foundation. As we enter our fifth year, we will begin a long-term focus on further strengthening our competitiveness in the domestic and global marketplace while overcoming challenges such as the strong Korean won, intense competition and tepid vehicle demand in Korea."
In 2006, GM Daewoo expanded its lineup of products through the roll out of the Winstorm SUV as well as gasoline and diesel versions of the Tosca sedan. It also introduced a new environmentally friendly common rail diesel engine, rehired 1,605 workers laid off by the former Daewoo Motor Co. in 2001, moved to a day-night two-shift operation at all of its domestic vehicle manufacturing plants, and was selected as the homeroom for GM’s global small and mini-car architectural development teams. Based on these achievements, GM Daewoo sold and exported a record 1,525,819 units last year in the domestic and to overseas markets.
Innovative Campaigns Lead to Strong Domestic Sales
A point of pride for GM Daewoo is its success in the domestic market. GM Daewoo sold 128,332 vehicles in Korea in 2006.
Contributing to GM Daewoo’s success in Korea was a series of innovative promotions such as the Free Exchange Program and the Used Car Buyback Guarantee Installment Plan.
The automaker also launched a series of experience-based marketing promotions. They included the GM Daewoo Passion Tour, in which 4,330 consumers drove GM Daewoo vehicles to Sorak Mountain and on Jeju Island; the Winstorm Pioneer Club, which gave Winstorm enthusiasts test-drive opportunities; the Winstorm Festival, in which 30,000 consumers were invited to participate in the launch of the new SUV; the Tosca Taxi Ambassador program, which appointed 300 taxi drivers to promote the Tosca; and a nationwide network of unique test-drive centers that are enabling consumers to become more familiar with GM Daewoo products. In addition, GM Daewoo launched a series of popular commercials featuring employees and their families under the theme of "We Invite You to Experience Our Passion."
The automaker also sponsored a series of musicals, participated in the establishment of PACE (Partners for the Advancement of Collaborative Engineering Education) Centers at Korea University and Sungkyunkwan University, and oversaw a series of volunteer activities through the GM Daewoo Employee Foundation and GM Daewoo Volunteer Plus International program.
GM Daewoo once again avoided a major work stoppage despite annual wage negotiations. GM Daewoo’s reinstatement of 1,605 former employees laid off by its predecessor set a good example for labor-management cooperation.
Thanks in part to its growth in the local market and its positive labor-management relationship, GM Daewoo was on track for a second consecutive profitable year, following 2005, in which it recorded sales of over KRW 8 trillion.
Growing Exports
GM Daewoo exports remained strong as well last year. Exports of complete vehicles and knockdown (KD) kits by GM Daewoo grew 31.8 percent to 1,397,487 units from 1,050,193 units in 2005. Exports of complete vehicles jumped 17.4 percent to 638,829 units, while exports of KD products surged 49.9 percent to 758,658 units. GM Daewoo continued to leverage the GM Group’s global brands, including Buick, Chevrolet, Holden, Pontiac and Suzuki, and its sales networks.
In 2006, GM Daewoo set not only a company record for combined domestic sales and exports in a single year but also an annual export record for GM country units and organizations around the globe.
GM Daewoo exported 174,698 complete vehicles to North America and 163,226 to Western Europe, which represented its largest export markets. GM Daewoo also exported 119,648 vehicles to Eastern Europe, 96,949 vehicles to Africa and the Middle East, 49,158 vehicles to Central and South America, and 35,150 vehicles to other parts of the Asia Pacific region. Exports to Eastern Europe and Asia Pacific showed the greatest increase (31.5 percent and 86.7 percent, respectively).
GM Daewoo exported 758,658 KD products worldwide. It set records for exports of KD kits to Asia Pacific and Eastern Europe (343,166 and 296,307 units, respectively). Demand was particularly strong in China, Thailand, India, Russia, and Central and South America. The opening of Korea’s largest KD packing business at Incheon Port last October will enable GM Daewoo to export up to 1.42 million KD kits on an annual basis.
New Facilities
GM Daewoo opened its diesel engine plant in Gunsan last year. The facility, which has an annual production capacity of 250,000 units, is producing a new family of Euro IV-compliant diesel engines.
GM Daewoo was selected last year as the home of the architectural development teams for GM’s global small and mini-car programs. It is concentrating on designing and developing architectures with diverse body styles to meet the requirements of numerous GM brands in both mature and emerging markets. "This is a reaffirmation of how far GM Daewoo and our employees have come in four short years and a sign of GM’s long-term commitment to our operations in this country," said Grimaldi.
Continued Expansion in 2007
In 2007, GM Daewoo will launch additional vehicles including a diesel version of the Lacetti and the G2X sports car. The automaker will also launch a new state-of-the-art six-speed automatic transmission manufactured at its Boryeong powertrain facility. In the middle of the year, an advanced vehicle test track is scheduled to open at GM Daewoo’s Cheong Na Tech Center. This will improve GM Daewoo’s ability to develop vehicles for the Korean and global marketplace. In addition, GM Daewoo will roll out a series of new sales promotions and marketing activities in 2007.
"Based on our achievements in 2006, we expect to continue to grow in Korea and around the world as we raise the bar for quality, reduce costs and introduce segment leading products," Grimaldi said.
GM Daewoo Auto & Technology was established in 2002. It has five manufacturing facilities in Korea as well as an assembly facility in Vietnam. In addition, GM Daewoo provides market and brand-specific vehicle kits for assembly at GM facilities in China, Thailand, India, Colombia and Venezuela. In 2005, GM Daewoo sold in Korea and exported more than 1.15 million vehicles. GM Daewoo vehicles are now offered in more than 150 markets on six continents under several GM Group brands. Imported GM products from the Cadillac and Saab premium brands are sold in Korea through GM AutoWorld retailers. More information on GM Daewoo and its products can be found on the company’s website at http://www.gmdaewoo.co.kr .
