By Cathy Rose A. Garcia
GM Daewoo Auto & Technology (GM Daewoo) is trying to make more of a splash in the domestic market. The company is planning to produce and sell its next-generation small car Chevrolet Aveo first in Korea next year.
The new Chevrolet Aveo, which was officially introduced at the 2010 Paris Motor Show last month, will be initially produced at the Bupyeong plant. The vehicle is expected to be launched in the Korean market in the first half of 2011, ahead of other markets around the world.
``GM Daewoo is proud to be the first member of the GM family to produce and sell GM’s next-generation global small car. With demand for small cars on the rise worldwide, this is great news not only for GM Daewoo and our suppliers, but for Korean consumers as well,” Mike Arcamone, GM Daewoo President and CEO, said in a statement.
GM Daewoo, considered GM’s global mini and small car development base, led the design, research and development for the new model. The new Aveo has a more spacious interior and cargo volume, and its interiors include a motorcycle-inspired instrument binnacle. A range of four cylinder petrol and diesel engines will be available.
Arcamone said the production of the new Aveo will sharply raise the utilization rate of its Bupyeong plant. The Bupyeong plant is expected to join GM Daewoo’s other plants in Gunsan, Changwon, and Boryeong in operating at full capacity.
The Korean unit of U.S. automaker General Motors has been looking at ways to boost its domestic sales, and the numbers seems to be improving.
In the first nine months of 2010, GM Daewoo recorded total sales of 546,720 vehicles, due to strong overseas demand. Exports still account for the bulk of its sales, with vehicle exports rising 40.7 percent to 459,446.
Domestic sales are also rising, with the number of vehicles sold from January to September increasing 15 percent to 87,274 vehicles from 75,782 vehicles during the same period last year.
However, in September, GM Daewoo’s domestic sales plunged 30 percent to 10,018 units, year-on-year.
Arcamone, who marked his first year at the helm of GM Daewoo last Oct. 1, has helped improve quality and quantity through his “change and communicative management” style.
“With the goal of positive change, I have worked closely with our employees over the last year to build a strong foundation of GM Daewoo's future success. This has helped GM Daewoo quickly recover from the global financial crisis and begin our turnaround towards profitability. At the same time, it has firmly established GM Daewoo as a critical player in GM's global success,” Arcamone said.
GM Daewoo’s operations have benefitted with the introduction of new models, including the Alpheon luxury sedan. The carmaker will be introducing another seven new models through the end of 2011.