Suzuki Will Broaden its Lineup While Daewoo Gets Much Needed Cash
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| Although this redesigned 2003 Leganza never made it to North America, Daewoo offered some very attractive models during its short life here. Suzuki will, of course, need to give the rebranded cars its styling treatment to differentiate them from the Korean company's past and fully adopt each into the Japanese brand's family. (Photo: Daewoo Auto) |
What to do with a car manufacturer that technically has no North American sales force and the continents lowest name recognition? Rebadge its cars with a familiar and trusted name and sell them to an unwitting public.
Of course Daewoo's products were never shameful thus Suzuki, the familiar and trusted brand in question, shouldn't have to worry about leading its loyal customers astray. On the contrary the Korean automaker could very well be the opportunity the company primarily known for its SUVs needs.
While Daewoo Auto Canada (Daewoo Motors of America in the U.S.), the brand's old sales operation, would rather Daewoo's new co-owner General Motors sell the cars under the Korean company's brand name through its dealer network, the world's largest automaker knows more than most about the cost challenges of marketing a completely separate brand.
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| Suzuki makes great cars and SUVs but its product line isn't very diverse. The addition of a new subcompact and midsize model will go a long way to increasing market share and profitability. (Photo: Suzuki) |
According to the Detroit Free Press say that sales should get underway later this year with two Daewoo-built cars revised as Suzukis. It's expected that Suzuki will formally announce its plans at the Chicago Auto Show on February 12. The first of its cars should be a midsize sedan and subcompact.
According to a Suzuki dealer who prefers not to be identified, "The midsize will be the size of a Honda Accord, but it will cost less and come with Suzuki's 7-year, 100,000-mile warranty."
Daewoo, desperately in need of revenues, will benefit from the arrangement while Suzuki needs to broaden its model lineup.
"It's the only thing that makes sense," stated another Suzuki dealer principle who also asked to be left unnamed. "There are a million reasons this will work."