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http://blog.wardsauto.com/bmcc...ition/
S. Korea is the last major market where Daewoo models are still sold without a Chevy bowtie. This is soon to change. As more globally designed and built Chevys enter the international marketplace, the Daewoo name will slowly shed it's home market significance. Meanwhile, Chevrolet has moved 3.5 million units globally, and is seeing rapid growth in Europe.

 

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Re: Chevy to Replace Daewoo in S. Korea: Bowtie Now 4th Best-Se ... (whitejeep1989)

So GM is doing to Daeweoo in S. Korea what Fiat will do to Chrysler here in America. Interesante...
 

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Re: Chevy to Replace Daewoo in S. Korea: Bowtie Now 4th Best-Se ... (whitejeep1989)

they're not kidding any-one
 

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Re: Chevy to Replace Daewoo in S. Korea: Bowtie Now 4th Best-Se ... (Fritz27)

Quote, originally posted by Fritz27 »
So GM is doing to Daeweoo in S. Korea what Fiat will do to Chrysler here in America. Interesante...

Times, they are a-changin'...
Numbers are numbers if these are real- goes right along with Buick's popularity in China. It'll be interesting to see if the PR mortally-wounded Government Motors brand all but folds in our time and becomes more of an oriental company where GM actually has willing customers (increasing, at least) and less of an American company as their heritage where they don't (declining, at least).
 

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FV-QR

Does that mean South Korea is reducing it's restrictions on American manufacturers in country? I was under the impression they had absurdly low caps to the number of models US companies could sell there.
 

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Re: Chevy to Replace Daewoo in S. Korea: Bowtie Now 4th Best-Se ... (Sentinelist)

Quote, originally posted by Sentinelist »

Times, they are a-changin'...
Numbers are numbers if these are real- goes right along with Buick's popularity in China. It'll be interesting to see if the PR mortally-wounded Government Motors brand all but folds in our time and becomes more of an oriental company where GM actually has willing customers (increasing, at least) and less of an American company as their heritage where they don't (declining, at least).

VW is more successful in China than GM, yet no one would suggest that VW is going to become a Chinese company. The Chinese market is huuuuuuuuuge! Well established players like VW and GM will easily begin to outsell their respective home markets. In defense of GM's American business, their marketshare here is holding steady, if not improving. Other than Toyota (on some occasions) GM still sells more cars/trucks here than any other company.
 

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Re: Chevy to Replace Daewoo in S. Korea: Bowtie Now 4th Best-Se ... (whitejeep1989)

That's gonna go over REAL well with the Koreans. Especially the ones working at Daewoo.
 

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Re: FV-QR (silvERia)

Quote, originally posted by silvERia »
Does that mean South Korea is reducing it's restrictions on American manufacturers in country? I was under the impression they had absurdly low caps to the number of models US companies could sell there.

I think it has more to do with ownership of the company and where the stuff is actually made. If I remember correctly, for a company to operate in Korea it has to be at least 50% Korean owned...meaning that GM technically can't own more than 50% of Daewoo. And as long as the vehicles are made in Korea, they wouldn't be subject to the crazy import taxes and customs fees. Imports here tend to cost about 60-70% more than they do in the US, which effectively prices them out of the market, so very few imports get purchased in Korea. One example: a Jeep Grand Cherokee Limited stickers at about $40K in the US, but in the Korean market they sticker at just under $70K. If I were a Korean consumer, I wouldn't buy imports either simply due to cost. These import taxes & fees get tagged on pretty much everything, even if there is no Korean-made alternative product.
I've already been seeing Daewoos on the streets of Seoul with the Chevy Bowtie on the front. Not many, but a few here and there. Honestly though, Daewoo is a marginal player even in Korea. They have exactly one model that sells well (the Daewoo Matiz, soon to be the Chevy Spark in the US). The rest of the lineup just doesn't seem to have a lot of market penetration here. That's based on what I see on the streets...I have not seen any actual sales figures, so take that for what it's worth.
 

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Re: FV-QR (silvERia)

Quote, originally posted by silvERia »
Does that mean South Korea is reducing it's restrictions on American manufacturers in country? I was under the impression they had absurdly low caps to the number of models US companies could sell there.

What restrictions are you talking about?
Quote, originally posted by soldierguy »

I think it has more to do with ownership of the company and where the stuff is actually made. If I remember correctly, for a company to operate in Korea it has to be at least 50% Korean owned...meaning that GM technically can't own more than 50% of Daewoo.

Uhh, that's China, not S Korea.
GM currently holds a little over 70% of Daewoo w/ Suzuki holding nearly 7% and SAIC 6%.
Also, Daewoo's commercial truck maker was purchased by Tata Motors, and Renault holds an 80.1% stake in Renault Samsung Motors and SAIC held a 51% stake in SsangYong Motor (until they did to SsangYong what Daimler did to Chrysler).
Quote, originally posted by silvERia »
And as long as the vehicles are made in Korea, they wouldn't be subject to the crazy import taxes and customs fees. Imports here tend to cost about 60-70% more than they do in the US, which effectively prices them out of the market, so very few imports get purchased in Korea.

Again, that's China.
The import tariff on autos in Korea is 8%, which is a little higher than that in Canada (about 6.7%) and lower than those for the EU and Australia (10%).
While there are additional taxes, that has to do w/ taxes on engine displacement.
Honda, Toyota/Lexus and Nissan/Infiniti have all made inroads into the Korean market (and the Germans, including VW do pretty well there, esp. the higher end models; the VW Phaeton has done better in Korea than in the US).
(Seriously, where are you coming up w/ this info.?)
 

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Re: FV-QR (CP1)

Quote, originally posted by CP1 »

What restrictions are you talking about?

I'm not really sure, I had always heard previously that the US manufacturers felt strongly limited in what they could do in Korea, whereas in China they're doing quite well. Basically the feeling was that South Korea was doing some heavy handed stuff to protect their domestic car manufacturers. I know when I was there from 2003-2004 the only U.S. badged vehicles I'd ever see were ones that U.S. Soldiers had brought over or bought there on base.
Quote »
Again, that's China.
The import tariff on autos in Korea is 8%, which is a little higher than that in Canada (about 6.7%) and lower than those for the EU and Australia (10%).
While there are additional taxes, that has to do w/ taxes on engine displacement.
Honda, Toyota/Lexus and Nissan/Infiniti have all made inroads into the Korean market (and the Germans, including VW do pretty well there, esp. the higher end models; the VW Phaeton has done better in Korea than in the US).
(Seriously, where are you coming up w/ this info.?)

you misquoted me, I did not write that.
 

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Re: FV-QR (silvERia)

Quote, originally posted by silvERia »

I know when I was there from 2003-2004 the only U.S. badged vehicles I'd ever see were ones that U.S. Soldiers had brought over or bought there on base.

in other words.. they didn't have anything to offer..
 

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Re: FV-QR (DUTCHMANia)

Quote, originally posted by DUTCHMANia »
in other words.. they didn't have anything to offer..

mustang vs tiburon? That's the first thing that comes to mind for me...I'm sure I can drum up one or two other cars...CTS, Wrangler etc....we're talking 2003 here, this is when Hyundai was putting out this gem:

Having ridden in hundreds of these things over there, I can assure you the Big 3 could compete with Hyundai then, they just were nonexistent. I think I only saw one Cadillac dealership in all of what I saw of Seoul (and I did see a surprisingly large amount of it), and I may even be imagining that one.
 

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Re: FV-QR (DUTCHMANia)

Quote, originally posted by DUTCHMANia »
in other words.. they didn't have anything to offer..

Which shouldn't come as a surprise to anyone.
The same holds true in the USDM... in regards to trucks. It's taken Toyota forever and a day to figure out a reasonable full size truck model and even it still falls behind the domestics.
When one market has space and fuel price constraints and another doesn't... products will be different in proportion to those variables.
Daewoos aren't a huge share of that market, but Koreans are some seriously nationalistic peeps. Seriously serious. I can't wait for the fall-out.
 

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Re: FV-QR (silvERia)

Quote, originally posted by silvERia »

I'm not really sure, I had always heard previously that the US manufacturers felt strongly limited in what they could do in Korea, whereas in China they're doing quite well. Basically the feeling was that South Korea was doing some heavy handed stuff to protect their domestic car manufacturers.

US auto manufacturers had little interest in setting up plants in Korea; the auto market just wasn't big enough to go through all the trouble.
As for China, US automakers are forced to go into joint-ventures w/ a Chinese company if they want to do business in China.
Yes, sales of GM, primarily Buick, are doing well in China, but pretty much all GM cars (well, half-GM anyway) sold in China are built in China.
In 2006, China reduced its import duty on foreign autos a whopping 3% from 28% to 25% (not sure if it has since been reduced further).
But still, that's not as bad as Vietnam where the import duty on autos was around 90% and is presently somewhere in the 80% range.
 

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Re: FV-QR (DUTCHMANia)

Quote, originally posted by DUTCHMANia »
in other words.. they didn't have anything to offer..

Why would an American company go out of their way to design cars which cater to the market in... Korea?
I mean, Koreans buy cars, but not enough for a company operating in the biggest market in the world (US) to go out of their way to address. Not to mention IIRC until recently Korea had super high tariffs which pretty much prevented a North American built car from really being successful in the Korean market (hence GM buying Daewoo).
Its the same argument on why you never really see the US makers going out of their way too far to increase penetration in Europe. Why get caught up on a dying market when you have places like China to sell cars.
But I honestly don't see why GM would change Daewoo to Chevy in Korea for any reason other than to "increase" Chevys worldwide sales (not sell MORE Chevys, but more cars with Chevy badges).
I don't really see what positive this would have on the Korean market. Imagine if a Chinese company bought Dodge. They might get away with it if they kept selling Dodges and people didn't have to think about it, but if they started taking off the Ram badges and replacing them with Ching Nip Chong Fong 1500 they would ruin themselves.


Modified by WhistlerYOW at 10:21 PM 3-22-2010
 

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Re: FV-QR (CP1)

Quote, originally posted by CP1 »
In 2006, China reduced its import duty on foreign autos a whopping 3% from 28% to 25% (not sure if it has since been reduced further).

It's still 25%. Auto parts are lower (the highest they go is 14%, most are charged 10%), except up until September of last year, if a car was made of more than 60% imported parts, all of the parts were charged a 25% tariff (this was ended because of a US complaint to the WTO). It's doubtful China's tariffs will go any lower as long as the US is allowed to treat China as a non-market economy (and arbitrarily implement trade barriers such as the recent one on Chinese tires) per China's 2001 terms of admission. The 25%/10% tariff on cars/parts brings China in line with their WTO obligations.
 
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