SOUTH KOREA: Daewoo to launch three overseas used vehicle marketing units - report
Daewoo Motor Sales Corporation on Thursday confirmed a local newspaper report that it is working to launch three overseas marketing units this year to expand its used-car export business, Dow Jones reported.
According to the news agency, the Seoul Economic Daily said the vehicle distribution agency company plans to set up the units in Central/South America, the Middle East and Eastern Europe.
Company spokesman Kim Kee-ho told Dow Jones the units are also designed to provide after-sales services in the regions.
"We see a strong competitiveness of South Korean used vehicles in terms of the price and the type of vehicles. We believe a better distributing system and the A/S (after-sales services) programmes will grow our overseas sales noticeably within [the] coming three years, at least," Kim reportedly said.
Daewoo Motor Sales also expects a saturation in the new vehicle market worldwide should result in growth of the second-hand market in the medium term, he told Dow Jones.
However, according to Dow Jones, Kim denied Daewoo Motor Sales has already selected Amman, Jordan for its Middle East unit, as was reported in the newspaper. "We are still studying to determine the sites for the units," Kim reportedly said.
Dow Jones said the used-car export operations currently contribute little to Daewoo Motor Sales' revenue, generating only $US6 million in 2002 out of total revenue of 3.5 trillion won or about $2.9 billion.
Daewoo Motor Sales aims to increase the revenue from its used-car export operations to $20 million in 2004 and up to $40 million by 2006, Dow Jones added.
The news agency noted that Daewoo Motor Sales doesn't sell used vehicles in South Korea, as its vehicle auction unit handles the domestic business.