Daewoo Changes Way of Selling Cars

PARIS -- Under pressure to sell more cars, Daewoo Motor Co. Ltd. is abandoning its "no dealers" sales policy in the U.K.
The Korean automaker made a splash when it came into the country in 1995. While it developed several company-owned showrooms, most cars were sold through its boutiques in grocery stores and hardware chains. Service was subcontracted.
Daewoo is looking to add about 80 high-quality franchised dealers, expanding the number of its sales outlets to 120. Daewoo last year sold 34,600 cars in the U.K. The new goal is 50,000.
Daewoo says the expansion is a logical progression of its strategy, and the company credits itself for improving the quality of dealerships in the country.
"Many of the better dealers and groups in the U.K. raised the level of the service they provide following Daewoo's arrival in the U.K., employing customer-focused innovations similar to those we introduced, making it much more appropriate for us to now offer them future partnerships," says Patrick Farrell, director of Daewoo sales and marketing operations.
Despite the Korean automaker's insolvency, Daewoo says its sales operations in the U.K. have been profitable.