General Motors South Korean unit has become a major contributor to the company’s global operations since it was acquired in the aftermath of the Asian economic crisis, a top executive told a news agency on Tuesday.
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“To see the progress that the company has made in the last five years is remarkable,” GM group vice chairman and chief financial officer Fritz Henderson told the Associated Press (AP) of GM Daewoo, adding: “It plays an enormously important role for General Motors globally.”
The report noted that GM Daewoo was created in 2002 after GM acquired Daewoo Motor, the vehicle unit of the Daewoo Group, a conglomerate collapsed under tens of billions of dollars in debt as a result of the economic melt-down that hit South Korea in 1997-98, part of the broader Asian crisis.
General Motors has a 50.9% stake in GM Daewoo, AP said.
GM Daewoo last year sold 1.5m vehicles and the unit accounts for about 15% of GM’s total group production, Henderson told the Associated Press after a two-day visit.
Of that total, about 1.4m vehicles were exported, he added, while the company increased its market share in South Korea to 10.7%, from 9.2% last year.
“It also plays an important role from the standpoint of vehicle development,” Henderson told AP. “It’s the engineering and development location for the next generation GM global minicars as well as small cars.”
GM Daewoo produces most of its export models under the Chevrolet brand and markets include Europe and North America. Its vehicles are sold as Holden models in Australia and New Zealand.
AP said the company exported 116,761 vehicles to the US last year.
Prominent is the little Aveo, an entry-level model for Chevrolet. It is also sold in Canada under the Pontiac and Suzuki brands.
