GM Daewoo, South Korea’s third-ranked automaker, reportedly expects its sales growth to slow to 12.5% next year from 38% so far this year, as the impact of new product launches wears off.
Go deeper with GlobalData
New GM Daewoo Automotive and Technology chief executive Michael Grimaldi forecast 2007 sales would rise to 1.7-1.8m vehicles from a 2006 target of 1.6m, a news agency reported.
He told Reuters at his first news conference at the company’s Pupyong plant west of Seoul that unit sales would hit 2m in the near future, but declined to elaborate.
“As we look forward into 2007, we see continued growth,” he said. “The Korean market is stable. But in terms of exports, we see growth.”
Analysts told Reuters increasing overseas demand for GM Daewoo cars should help the firm meet the target despite concerns over weak domestic demand.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“GM Daewoo is almost the only GM company competitive in small car segments, and the world’s top auto maker will use more GM Daewoo products,” Yong Dae-in, auto analyst at Goodmorning Shinhan Securities, told the news agency. “We will see more demand for small vehicles from emerging markets.”
Reuters noted that, in June, GM Daewoo raised its 2006 sales target by 100,000 vehicles, about 40% higher than 2005, citing rising global demand. It sold 1.1m cars in January-September, up 38.2% from the same period last year, propelled by a leap in exports and the launch of new models such as the Captiva sport utility vehicle and the Tosca mid-sized sedan.
According to Reuters, Grimaldi, who was previously GM’s president and general manager in Canada, said GM Daewoo was looking to exploit customer demand for fuel-efficient cars.
“As fuel economy has become more important and fuel prices have risen, many export markets are looking for more products from us. So we’ll continue to explore ways to meet that demand,” he said.
The report noted that GM Daewoo sells more than 90% of its vehicles abroad, exporting both completed cars and CKD kits for assembly overseas.
The company’s exports have quadrupled over the last three years to 1m vehicles last year, with solid growth in Europe, North America and emerging markets such as Russia, China and India, Reuters added.
