January 13, 2002
It was less than a year ago that Daewoo sank into bankruptcy, leaving its U.S. dealers and customers high and dry. Now General Motors, which bought the assets of the Korean company minus its North American dealer network, says it will begin exporting Daewoos back to the U.S. under a different name by the end of the year.
Possibilities for a name include the company's existing brands and its joint venture partners, including Suzuki, which owns about 15 percent of GM Daewoo.
Korean cars have been making big inroads into the U.S. Hyundai and Kia have been the fastest-growing brands over the past year, taking a big share of the low end of the market.
Meanwhile, many Americans who bought Daewoos find themselves stuck with cars that are expensive to repair and nearly worthless on the retail market. Many owe much more on the cars than they are worth.
"I can't find parts for my car -- it is not running and I owe money on it what can I do?" asked Anthony of West Babylon, NY, in a recent complaint to ConsumerAffairs.com.
"It just isn't fair as hard as you work to have something nice and then you end up with a piece of junk," said Nancy of Chatham, VA, who owns a 2000 Daewoo.
Besides hoping to sell thousands of renamed Daewoos to American consumers, GM is also counting on GM Daewoo to see big sales increases in Korea, Europe and South America. Sales in Korea are expected to reach 500,000 this year, up from 377,000 in 2001.
The company expects to establish a full product line, said Jack Smith, chairman of General Motors Corp. (GM), according to a report in the Korean press.
"A full lineup of products, with releasing sports utility vehicles and luxury sedans, is important for GM Daewoo's future success," Korea's Maeil Business Newspaper quoted Smith as saying at the Detroit Auto Show last week.
Meanwhile, Kim Woo-choong, the fugitive former chairman of Daewoo, was spotted last week for the first time since he fled Korea in August 1999, police said. The National Police Agency said Kim entered Thailand on Nov. 16 before leaving for Rome on Dec. 1. His whereabouts since then are unknown.
Kim is one of South Korea's most wanted fugitives. He is accused of falsifying Daewoo's accounts to draw billions of dollars in illegal bank loans and diverting them overseas.
