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AutoBlog: REPORT: GM ups its ante in GM Daewoo

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Filed under: Budget, GM

gm_daewoo_stake.jpg

GM Daewoo has four shareholders: GM, Korea Development Bank, Suzuki Motor Corporation, and Shanghai Automotive Industry Corporation. When GM Daewoo put out a rights issue, only one of the four took the bite: GM, which made it rain to the tune of $412 million and raised its stake from 50.9% to 70.1%.

Neither GM's move nor the non-interest of at least two other parties is surprising. SAIC is still gun shy about certain investments after the Ssangyong debacle, while Suzuki is more concerned with being courted by VW and the Kizashi's fate in the U.S. right now. It is GM that has every reason to strengthen its ties in Asia; after all, The General sold more cars in China last month than it did at home -- and with GM Daewoo.

Daewoo engineers small cars for GM, like Chevrolet's crucial acid test known as the Cruze, and last year, all told, GM Daewoo sold 1.9 million units. The financial infusion will be used for debts and to help the company's liquidity position.

[source: Detroit News via GM Inside News]

REPORT: GM ups its ante in GM Daewoo originally appeared on Autoblog on Sun, 25 Oct 2009 12:47:00 EST. Please see our terms for use of feeds.

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Well, if small cars are the future, lets just hope for cooler designs.....

Can't say I'm surprised though.

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This move was only delayed due to the lack of money at GM. I think they would have done this sooner if they could have afforded it. It todays markets there are only a few companies that can stand on their own the rest need a dance partner. I just wonder how long BMW and Honda can stand on their own with out a partner. I see BMW has already talked to Benz on some projects.

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It should serve them very well, despite the stereo-typical feedback from onlookers.

Food for thought:

GM fans think Korean engineered and built cars are all crappier than home-grown automobiles. It's all Koreas fault.

Suzuki fans think the downgrade in their quality ratings was due primarily to the GMDAT connection with their Forenza, Reno, Verona offerings. It's all GM's fault.

Eastern nations like China and India have been selling these cars for great profit and complaining little. Lower standards? Less issues? Fewer offerings for better value? There's a whole lot of reasons I guess. Might as well raise the stakes in the company that can make a great amount of money in China and other eastern nations. Who needs the North American market when you have that?

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This move was only delayed due to the lack of money at GM. I think they would have done this sooner if they could have afforded it. It todays markets there are only a few companies that can stand on their own the rest need a dance partner. I just wonder how long BMW and Honda can stand on their own with out a partner. I see BMW has already talked to Benz on some projects.

Yeah, I expect further consolidation in the automotive world. Even companies that do poorly have a lot of assets in factories and powetrains, etc. I expect more deals like Fiat-Chrysler in the future.

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This move was only delayed due to the lack of money at GM. I think they would have done this sooner if they could have afforded it. It todays markets there are only a few companies that can stand on their own the rest need a dance partner. I just wonder how long BMW and Honda can stand on their own with out a partner. I see BMW has already talked to Benz on some projects.

Since Honda's focus is small, efficient vehicles in general, I can see Honda staying independent for a long time...

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Since Honda's focus is small, efficient vehicles in general, I can see Honda staying independent for a long time...

The thing I think is helping Honda to a point is how many different markets they are in. They are now building everything from robots to small Jets.

The issue I read about in the past that may hurt them in the automotive market it the development cost. They need to share them with someone else as there are few companies that do it alone anymore. Honda may work with someone but I do not see them selling out. They are one of the few. And I agree their very focused line up has been good to them. They do one thing and they do it well. small efficent cars.

Sometimes less is more.

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GM is doing it right; well done! Now all they need is to find a way to keep a grip on Opel, and the long-term future of the company is fairly safe.

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GM is doing it right; well done! Now all they need is to find a way to keep a grip on Opel, and the long-term future of the company is fairly safe.

+1

Even if GM increases its presence in Europe via Chevrolet, it needs the Opel/Vauxhall brand if it is going to stay in the game, long term. Not mentioned in the article is GM's presence in South America: Brazil is already a bigger market than Canada and GM is doing very well there. Brazilian products are mostly spun off Opel platforms (although I'd imagine more GM-DAT DNA will unfold in the future) and will need Opel input going forward.

My 2007 Optra is doign great: 26 months old (although only has 16,000 miles on it!) and has only had routine trips to the dealer - except the 2 new tires I've had to put on it, due to nails and such. And I drive it like I stole it, so my hat is off to the little 2.0 being able to put up with me for 2 years! My only conmplaint is the crappy 4 spd automatic, but then that isn't a GM tranny, so what do you expect? :AH-HA_wink: It's shifts are rough and the fuel mileage is less than stellar, largely due to the tranny I suspect. (I would kill for the 2.2/4 spd in the Cobalt but, oh well!)

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+2 to ZL-1 and Carbiz.

GM cannot be a global entity without Opel. GM should have kept stakes in Subaru. Quirky brand yes - but great tuner and race car following. I am not at all disappointed in selling Suzuki and Isuzu stakes.

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+1

Even if GM increases its presence in Europe via Chevrolet, it needs the Opel/Vauxhall brand if it is going to stay in the game, long term. Not mentioned in the article is GM's presence in South America: Brazil is already a bigger market than Canada and GM is doing very well there. Brazilian products are mostly spun off Opel platforms (although I'd imagine more GM-DAT DNA will unfold in the future) and will need Opel input going forward.

My 2007 Optra is doign great: 26 months old (although only has 16,000 miles on it!) and has only had routine trips to the dealer - except the 2 new tires I've had to put on it, due to nails and such. And I drive it like I stole it, so my hat is off to the little 2.0 being able to put up with me for 2 years! My only conmplaint is the crappy 4 spd automatic, but then that isn't a GM tranny, so what do you expect? :AH-HA_wink: It's shifts are rough and the fuel mileage is less than stellar, largely due to the tranny I suspect. (I would kill for the 2.2/4 spd in the Cobalt but, oh well!)

I think you are from UK,,, are you?

In Middle East (especially Saudi Arabia) GM Daewoo is doing much greater than the Original GM vehicles. Surprisingly, they are so reliable and cheaper than Hyundai and Kia. I have 2007 Chevy Epica 17K mile. Frankly, it has a very cheap interior but so tight and so good for USD 15,260 mid-size-sedan. They are not better than Hyundai and Kia, Cruze is the only one in the fleet that is competitive to Japanese.

I wish in future, we see much like Cruze quality and look

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The Stig trains people to drive in the resonably price Chevy Lacetti. If Chevy offers a Stig edition in England they would forget about all other cars there. LOL!

Edited by hyperv6
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I think you are from UK,,, are you?

In Middle East (especially Saudi Arabia) GM Daewoo is doing much greater than the Original GM vehicles. Surprisingly, they are so reliable and cheaper than Hyundai and Kia. I have 2007 Chevy Epica 17K mile. Frankly, it has a very cheap interior but so tight and so good for USD 15,260 mid-size-sedan. They are not better than Hyundai and Kia, Cruze is the only one in the fleet that is competitive to Japanese.

I wish in future, we see much like Cruze quality and look

Actually, I'm from the colonies (Canada.) The Optra 5 door sold very well here, which is why they stopped exporting them to Canada! As I indicated, performance-wise it is no rocket, but it was a few thousand cheaper than a Civic and has proven to be just as reliable. Hopefully, that is a harbiner of things to come out of GM-DAT.

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