Daewoo Motors India (DMI) again suspended work at its Surajpur plant in Uttar Pradesh for one week, beginning yesterday (13/12/00) reports AutoAsia Online. The temporary shutdown was caused by a rising inventory of finished vehicles as demand for Daewoo cars falls away. The plant was also closed between 4-11 December.
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AutoAsia Online says that one of the most pressing issues facing DMI is how to combat the defection of dealers to other manufacturers. At least 10 main dealers are reported to have deserted the marque of late and DMI itself has terminated contracts with three dealers over the past eight months because of poor sales.
DMI says two of the three dealers have been replaced and notes that it currently has 121 dealers compared with 97 at the end of last year. At the same time, officials admit there is a problem. highlighted this week by the defection of Chennai-based dealer MPL Automobiles to General Motors.
In a bid to spur consumer interest, DMI has signed up to a partnership with ICICI Personal Finance Services to launch a new low-interest plan for new car buyers. The scheme, available in the Delhi area, offers Daewoo Matiz buyers a 12.27% interest loan over five years and 10.2% over three years.
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