General Motors Corp. purchased the remains of Daewoo Motor Co. Ltd. and formed GM Daewoo Auto & Technology Ltd. (GMDAT) for one simple reason: easy access to the South Korean market. But with sales in 2003 of only 128,000 vehicles for a 9.6% share, the goal is far from realized.
“Probably our single-biggest disappointment would be our performance in the Korean market,” says Fritz Henderson,president-GM Asia/Pacific.
GMDAT's share of GM Asia/Pacific's total 764,000 units (for a 4.8%-4.9% regional market share) puts it in third place for the region. GM's strongest sales, by far, were in China, with 380,000 units, including sales of minivehicles through its Wuling joint venture, while Australia saw a record year of 183,000 units.
Not only are South Korean sales weak, but GMDAT isn't profitable either. Henderson blames the problem on market acceptance — persuading the Korean customer to view GMDAT as a domestic auto maker — as well as swings in the market's dominant segments.
GMDAT holds a 24% share in the sectors in which it competes. But those segments have dwindled to only 35% of the market, as GM did not anticipate the sudden trend of SUVs, commercial vehicles and large cars in South Korea.
