GMDAT Achieved Record High October Exports "If you can't beat 'em, join 'em," is an old adage that General Motors adhered to when it became obvious emerging markets would
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| Chevy's Aveo is a strong seller in the entry-level subcompact segment. (Photo: Alexandra Straub, Canadian Auto Press) |
continue to eat away at its eroding market share to the point that building small cars, at least, would no longer be potentially profitable. The opportunity came in 2002 when Daewoo hit rock bottom and GM, along with joint venture partner Suzuki, came to the "rescue" and purchased a majority stake in some of its assets, including the rights to the name, all the vehicles it current offered globally and, most importantly, the manufacturing facilities in South Korea. Now, GMDAT (GM Daewoo Automotive & Technology Co.) is one of GM's shining stars in a black hole of corporate challenges, and South Korea's third-largest automaker after Hyundai and its affiliate Kia. Automotive
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| Suzuki's involvement in the GMDAT project has allowed it to bring the new midsize Verona to market, expanding its vehicle lineup into a much more profitable segment. (Suzuki Canada) |
market analysts had had concerns, however, that the General's current financial difficulties might negatively effect its GMDAT division, but according to that company's CEO, no such worries are warranted. "We are self-financing and we have credit lines if we need to grow on them," GM Daewoo CEO Nick Reilly stated to media gathered at a press conference in Pusan, South Korea, introducing a GM hydrogen fuel-cell car co-developed with Toyota. "The problems in the United States are somewhat overblown and there's a plan to get out of the problems ... in the meantime it's not affecting us," Reilly added.