The best part had to be the price. It would hold steady at the current cars $19,695 base even though the 2003 model would be an all-new model boasting improved features and enhanced refinement. Sounds great, no? So where are the cars? All-new 2003 models from Daewoo's competitors started to debut last spring while a few new models as well as carry-overs are showing up at dealerships now. All but at Daewoo dealers that is. While there's no official word from Daewoo Auto Canada, prospects look grim for any 2003 models making it to Canada at all. What's the problem?
Well if you haven't heard yet GM has taken over key assets of Daewoo, but unfortunately for Daewoo Auto Canada that doesn't include its sales organizations. Is the Korean brand on the verge of showing its taillights to Canada? Brad Rome, Daewoo Canada's national advertising and communications manager, stated earlier this year that "Daewoo Auto Canada has not been included in the General Motors sale," like its American counterpart Daewoo Motors of America, "and we're waiting further information and direction from Korea with regards to the future." While nothing is definite yet, most industry analysts consider Daewoo to be on 'death row'. Sources say the company only has sufficient funds to remain in business for seven months. Whether this figure is accurate or not, it doesn't really matter if the brand has no new cars to sell.
While the uncertain demise of Daewoo is very bad news, it shouldn't come as too much of a shock to those with their ear to the ground. Still it makes you wonder why GM would buy a company that it knows is going out of business in two of the world's largest markets, the U.S. and Canada. Is this just another case of overzealous brand accumulation at a fire-sale price or does the General have something else in mind? Daewoo offers GM a front door to the Asian market as well as some prime facilities for producing inexpensive, quality built small cars.