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FOR RELEASE: September 26, 2002

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Market and model -- Good Prospects for the Kalos in a Growing Segment

  • Attractive new models have led to a boom in this vehicle category
  • Italy is the biggest market for this class in Europe
  • Daewoo newcomer due to reach west European dealers in September 2002

Unique design, value for money, well-balanced driving characteristics and outstanding space utilization are the key strengths of the new Daewoo Kalos. But these are not the only reasons why the prospects of success for the compact Korean are good: The car is being launched into an expanding west European market segment. The small-car or "B" segment grew from 1999 to 2001 alone by around 11 percent or 420,000 units. In 2001, some 4.3 million Europeans decided to buy a vehicle of this class, and with nearly 27 percent of the overall market, this is one of the biggest segments of all. The current half-yearly figures also indicate continuing growth.

Successful start on the domestic South Korean market

The reasons for this positive development are, according to market research, firstly the generation change among large-volume models and secondly the debut of a number of attractive new models that have no direct predecessors. In Fall 2002, this latter group will be extended by another highly promising candidate in the form of the Kalos. In its South Korean domestic market, it has already found many friends, with some 3,000 having been sold every month since May. That is a truly outstanding result in a market that, with just under 1.2 million new car registrations a year (2000), is comparable in size to the Spanish market. And although the South Koreans generally prefer notchback models, the attractive hatchback has already captured half the sales of the Kalos notchback. The Kalos is made in Bupyong, situated between Seoul and the port of Incheon.

Different target groups in northern and southern Europe

Smaller vehicles also play an important role in Daewoo's model mix in South Korea: In the first few months of 2002, the smart mini Matiz and the indirect predecessor of the Kalos, the Lanos, together accounted for 49 percent of Daewoo's sales on its domestic market. The two model ranges were even more successful in Europe, where they achieved a formidable quota of 79 percent in the same period.

B-segment vehicles are bought very differently in Europe. Whereas in the north they tend to be driven more by women as the second in a two-car family, in the southern countries they are more often bought by young families. These differences are also reflected in the number of units sold: The biggest market in 2001 was Italy with around 914,000 new registrations in this vehicle category, followed by France (750,000), UK (675,000) and Germany (521,500). Daewoo's marketing specialists expect the same sort of pattern among the individual countries to be reflected in the sales of the Kalos. The new model - on which Daewoo gives a warranty of three years - is due to be launched in western Europe in September 2002 and will initially be available with the high-traction 1.4-liter 61 kW/83 hp gasoline engine in combination with a five-speed manual gearbox. The new five-door car will be available in two versions, the SE and SX, with a number of optional extras ranging from a glass roof and air-conditioning to a high-quality audio unit with CD changer.

Interview with Erhard L. (Hardy) Spranger, designated European Chairman of GM Daewoo Auto & Technology Company

"Good Value for Money will Appeal to Smart Shoppers"

The launch of the Kalos almost coincides with the start of the GM Daewoo Auto & Technology Company. We talked to its designated European Executive in Charge, Erhard L. (Hardy) Spranger.

Question: Does the Kalos fit in with the future plans of the new company?

Spranger: With its appealing, unmistakable exterior, the Kalos is the ideal ambassador for a brand about to embark on a new career. Its smaller brother, the Daewoo Matiz, with its smart and appealing contours also designed by Italdesign, already provided a refreshing alternative to the optical monotony of this vehicle class. Indeed, striking design will continue to be one of Daewoo's key traits. It will help us in our expansion strategy insofar as our cars always tend to be eye-catchers out on the road and people see them as a model family.

Question: What other core characteristics does the brand have?

Spranger: With our excellent value for money, we appeal to a target group I would describe as "smart shoppers". These people are not willing to pay premium surcharges without getting tangible value in return. They don't necessarily have to keep to a tight budget, but they are nevertheless looking for a comparatively inexpensive, mature, safe and reliable product with high benefit and a style and design that put it apart from the rest.

Question: The motives for General Motors to become involved in the Korean manufacturer were to serve this section of the buying public with a reliable brand and, in addition, to gain a foothold on the important Asian market. Looking at it from the other side, how will Daewoo benefit from the involvement of the American motor company?
Spranger: The potential is enormous. We are currently in the process of working out the various possibilities. Making use of synergies in marketing, especially in eastern Europe, and working together in the technical sector with other European companies and partners of General Motors are just two aspects. The fact that, thanks to this involvement, Daewoo has a future again also has an enormous motivating effect on the employees. In many talks I have had with my Korean and European Daewoo colleagues, I have experienced a very committed and dedicated attitude indeed, something I would call "passion for the brand".

Question: You have already worked in Japan and Singapore for Opel and General Motors. This must have been valuable experience for you when it came to mediating between western and Asian management cultures in your present position?

Spranger: Such experience is naturally helpful in day-to-day business. But the differences in the way negotiations are handled are no longer as enormous as people generally assume them to be. Being an export-oriented company, Daewoo has been open to the world for some time now. And the European design of our models is being very well received on the domestic Korean market and is an important identification feature there. This makes it easier for us when we argue that the demands of the European markets have to be given very special consideration in the development of new models.

Biography
Erhard L. Spranger was born in Austria on November 11, 1942 and studied Philosophy and Law at the Universities of Vienna and Geneva. In 1963, he began his professional career at General Motors (GM) as a sales promotion specialist. Spranger became familiar with the Asian car markets and the Far Eastern mentality when he was Director of Opel's sales operation in Tokyo, Japan, and Executive Director Sales and Marketing at General Motors in Singapore. Since May 2002, he has been head of the transition team establishing the GM Daewoo Auto & Technology Company Europe in Zurich/Switzerland. "Hardy" Spranger is married and has two grown-up children. He is a passionate driver and in his spare time collects books on Austrian history and occasionally plays tennis.

Design and aerodynamics -- Kalos Combines Harmonious Proportions and Mediterranean Flair

· Modern European body lines stem from Italdesign
· Unusual lamps upgrade the front and rear
· Circular elements are a recurring feature in the interior

With its saucy, sporty style, the new Daewoo Kalos has injected new verve and Mediterranean flair into the small-car category. The striking design originated in the styling studios of Italdesign in Turin. Daewoo is thus continuing its successful cooperation with the famous team of Giorgetto Giugiaro that gave the modern mini Matiz (1998) its unmistakable, southern Europe-inspired contours. Giugiaro and the members of the Korean design center have continued developing the finer details of the compact car from the first public appearance of the Kalos as a concept vehicle at the Paris Motor Show in fall 2000, through the prototype study at the Geneva Motor Show in March 2002, to the final production model. The end result is a picture of perfect harmony.

Stunning profile: Deep side groove and wide wheel arches

Extremely short overhangs (at the front, 81 cm, at the rear 49 cm), combined with the high roof line, the lower window edge rising slightly to the rear, and the steeply angled back gives the Kalos well-balanced harmonious proportions with excellent space utilization. The wide, muscular wheel arches and the deep groove in the lower area of the doors, which makes a dynamic downward kink in front of the rear wheels, are other notable design features.

The additional, third small side window not only opens up new perspectives for the rear passengers, it also optically loosens up the rear section, making it look light and airy. In addition, the extra piece of glass stretches the body slightly and creates the impression of an even larger interior. This is reinforced by the black glass borders which, viewed from the side, make you think it is one continuous window area. The large rear window also adds to the bright, friendly atmosphere inside, and the comparatively large glass surface makes the rear part of the car look lighter. This combination of high functionality and attractive design is typical of the Daewoo Kalos.

The two rugged bumpers, like the side sills, are sprayed in the same color as the bodywork. Body-colored exterior mirrors are available as an option.. If desired, the sporty appearance can be further enhanced with attractively designed light alloy wheels and a roof spoiler at the back. Stylish metallic finishes are available for the Kalos SX.

Striking front features: Headlamps in a clear-glass look

The novel lighting technology of the Kalos is another eye-catching feature. The front headlamps are designed in a clear-glass look, with the horizontal indicator lamps placed like eyelids under the same cover. Another striking trait of the front of the car is the way the bumper and the chrome grille blend harmoniously into the engine hood.

The rear lights have an unusual hexagonal form and are geometrically clearly divided into the brake and tail lamps (red) and the indicators and reverse light (white). The number plate is positioned in the tailgate between the two lamps and, with its rectangular form, creates an attractive contrast with the obliquely designed rear lights.

Aerodynamic qualities: Favorable drag coefficient of 0.35

Daewoo's newcomer has a low drag coefficient of 0.35. In combination with the fairly large frontal area for this vehicle category of 2.16 m² - due to the height of the vehicle and the resultant large amount of headroom inside - the resultant air resistance is equivalent to 0.74 m². Many minor modifications were made in the wind tunnel to optimize the flow pattern on the outer skin of the car, and the use of an inclined roof antenna instead of a rod antenna, for example, contributes - as do the flat door handles - to the good aerodynamic properties.

Friendly atmosphere: Circular forms and fresh fabric designs in the interior

The Kalos also presents a modern and attractive appearance inside. In the SX version, the anthracite-colored center console is set off effectively from the friendly light grey of the dashboard, and the instrument binnacle and the steering wheel have both also been designed in this dark, stylish tone. Two ventilator rosettes on the top of the center console are another striking style element. Their circular form is repeated in the side air vents, the cockpit displays and the door openers.

The interior designers have stuck to this circular pattern in the fabric liners on the four doors. Carbon fiber-like ornamentations in the edgings around the power-window switches, for example, accentuate the elegant appearance in the SX version. The basic SE model, too, looks very stylish in its fresh, easy-care fabric patterns.

Interview with Giorgetto Giugiaro, founder and Chairman of Italdesign

"We Wanted to Tread New Paths in Terms of Design"

Not only the sleek exterior lines of the Kalos bodywork but also the car's interior were designed by the Italian company, Italdesign. We talked to the founder of Italdesign, Giorgetto Giugiaro, about the company's cooperation with the Daewoo Design Center and about the youngest model to come from the Korean manufacturer.

Question: You have been working with Daewoo for seven years now. What do you feel for the name? How do you see it?

Giugiaro: In my view, Daewoo is an ambitious marque about to leap into a new future. It has an attractive model range and the courage to reestablish itself on the European market.

Question: Compared with other vehicles in its sector, the Kalos is a very striking car. Why this emphasis on individual design?

Giugiaro: When we designed it, we set out to produce an alternative to conventional lines and tread new paths in terms of design. We had already successfully pursued this concept in the Matiz, which was also designed by us and is quite exceptional for this class of vehicle. It was therefore perfectly natural that we should want to go for an unmistakable design again. In any case, the Daewoo specs also called for individuality in terms of design.

Question: What is it in particular that gives the Kalos its Mediterranean flair?

Giugiaro: It is not the individual details but its overall appearance, its clear-cut contours. The Kalos has simple but powerful lines and, due to the short overhangs, boasts particularly harmonious proportions. It just has that 'certain something'.
Question: Which design features of the car's exterior are you particularly proud of?

Giugiaro: The form of the body is unique because the car is relatively short but at the same time much higher than is normal for its class. Due to these proportions, the Kalos looks particularly impressive. One of the typical design features is the third side window, which makes the car look lighter, airier and longer. The front headlamps with the indicators underneath are also an unusual solution.

Question: And what about the design highlights inside?

Giugiaro: We make frequent use of circular elements, for example in the inside door openers, the layout of the door liners and the instrument covers. In this respect, we have carried on the design language we incorporated in the Matiz.

Biography
Giorgetto Giugiaro was born on August 7, 1938 in Garessio/Italy. Dante Giacosa, the legendary chief engineer at Fiat, discovered his gift for auto design in 1955 and gave him a job. After spending periods at Nuccio Bertone (1959 - 1965) and Ghia (1965 - 1967), Giugiaro set up the company Italdesign in February 1968. Giugiaro and his team have to date designed more than 100 production cars, of which a total of 40 million units have so far been made. The contact with Daewoo came about in February 1994. The Lanos, launched in Europe in 1997, was the first Daewoo model to be designed by the famous Italian styling experts, but the enormous creative potential of the cooperation was demonstrated two years earlier in 1995 when the sporty Bucrane concept car was shown at the Geneva Motor Show: the coupe with removable wing doors was designed by Italdesign, with the engineering based on Daewoo components.

Giorgetto Giugiaro is married and has two children, Fabrizio and Laura. They have both inherited their father's talents: he works as a styling director at Italdesign, while Laura is the Managing Director of Giugiaro-Design, a branch of the company specializing in industrial design.
Interior and equipment

Compact Kalos: Spacious and Smartly Furnished

· Outstanding amount of space and plenty of headroom for five passengers
· Flexible trunk space with capacity of up to 735 liters
· Plenty of stowage room and stacks of features for day-to-day use

Although the design team's brief for the Kalos of achieving compactness in terms of the exterior dimensions but plenty of space in the passenger compartment would seem to be contradictory, the new Daewoo, with its unusual vehicle format and efficient use of space, has shown that this is indeed possible. It has four doors as standard and a large tailgate that allow easy access to the car's interior and trunk. A large number of well thought-out details, ranging from Isofix child seat anchorages to the practical holder for toll tickets in the instrument panel, are just two of the things that make life that little bit easier in day-to-day use. The range of standard features in both model versions is extensive. In addition, there are a number of attractive optional extras like the electrically operated glass roof, air-conditioning and a 5-disc CD changer.

Inside: More than average head and legroom

With its exterior length of just 3.88 meters and small turning circle diameter of 9.78 meters, it is easy to guide the Kalos into the tightest parking space. Yet because of its unusual, almost van-like height (1,495 millimeters) and one of the longest wheelbases in its class (2,480 millimeters), there is still plenty of space inside the five-seater. The headroom of 955 millimeters is unmatched in this segment. This is also true of the legroom in the rear, where it boasts a best-of-class figure of 900 millimeters.

Apart from the above-average amount of space, the seats are well padded around the thigh area so that the occupants can travel long distances in comfort. The angle of the steering wheel can be adjusted (standard feature), and together with the height-adjustable seat, drivers of different height and build will all find an ergonomic driving position behind the steering wheel. The seat is raised slightly at the front to give the driver a better view of the traffic. The outside mirrors - optionally heated - can be adjusted from inside.

Safe seats: Three-point seat belts, simple Isofix fitting for child seats

All five seats in the Kalos are fitted with three-point seat belts - a feature that cannot necessarily be taken for granted in this vehicle class. Attaching a child seat on the rear bench is, thanks to the outstandingly simple Isofix system, nothing short of child's play. There are small zip fasteners placed at the back of the bench on the outside rear seats which open up to reveal the anchorages for the Isofix seat.

Useful shelves and trays: Nifty ideas for parking tickets and picnics

Bigger children and adults will gain great pleasure from the practical picnic tray that can be flipped open from the rear of the passenger seat in the SX version. This makes it easier to take a small snack during the journey, or perhaps keep a book ready to hand. There are hooks on the front headrests, on which small shopping bags can be safely attached. Basically, there is no shortage of shelves and trays: The ticket holder on the very left of the dashboard is another of Daewoo's practical ideas, as it is very handy indeed for putting toll tickets, parking tickets or credit cards in without having to stop and search for somewhere to put them.

Drink cans and cups are well looked after in the retractable cup holders in the center console or in the recess at the end of the center tunnel. More stowage space is available in the large compartments in the front doors, the glove box, the open tray below the radio and pockets in the back of the front seats.

Variable trunk space: Up to 735 liters capacity

It is not just odds and ends that can be accommodated in the compact Kalos; thanks to its outstanding variability, it can also accommodate bulky goods like a piece of furniture or sports equipment. The rear-seat backrest can be split in the ratio of 60/40 and folded back (standard). If more room is needed, the whole bench can be easily lifted up and attached behind the front seats to the passenger headrest by means of a special belt. The load space is then a mighty 735 liters (VDA standard). With all the seats and the parcel shelf in place, the luggage compartment has a capacity of 175 liters. With a maximum payload of 495 kg, the compact Korean's carrying qualities really come into their own.

The actual loading and unloading operation is made easier by the high-opening tailgate, and a grip on the inside makes it easier to close without getting your fingers dirty. The illuminated trunk is completely carpeted. The inflatable spare tire is accommodated under the trunk cover, and the Daewoo designers have taken care to make the recess big enough to accommodate the original wheel in the event of a puncture.

Plenty of features: Power windows standard at front

The Kalos SE and SX are the two models to be launched by Daewoo in Western Europe. The entry-level SE comes with a wide variety of creature comforts and practical details as standard, including the angle-adjustable steering wheel, power steering, power windows at the front, tinted windscreen, windscreen wiper at the back and RDS cassette radio with four speakers.

Safety features like the driver and passenger airbags, three-point seat belts throughout and the Isofix children's seat attachment are also standard. The Kalos 1.4 SX has, in addition, fog lamps at the front, electric windows in the rear, central locking, height-adjustable driver seat, dipping rear view mirror and the nifty picnic table on the back of the passenger seat.

Anyone wishing to up the already high safety standard even further can order the Kalos SE with four-channel ABS and side airbags. These options are not restricted to the SX, but are available for both versions. The same also applies to the air-conditioner and passenger compartment air filter, light alloy wheels, roof spoiler at the back, electrically operated glass roof, remote central locking with theft protection and 5-disc CD changer with six speakers.

Body and safety, powertrain and chassis -- Kalos Offers High Safety Level with Good Driving Characteristics

· Crash-optimized body structure and sophisticated restraint systems
· Wide-ranging measures for noise and vibration damping
· Optional: even more effective deceleration with four channel ABS brake unit

With the launch of the Kalos, Daewoo is not only entering a new era in its company history, it is also moving into a new phase from the technical point of view, because this compact hatchback boasts a number of features that have so far been the preserve of a higher vehicle category. They include wide-ranging acoustic and vibration-damping measures and an exemplary range of equipment that includes three-point safety belts for all five seats. The modern 1.4-liter gasoline engine, with which the Kalos will be starting out on its European career, makes for relaxed driving due to its good tractive power. The engine's temperament harmonizes perfectly with the agile, comfortable drive characteristics of the chassis - a chassis that has been specially adapted to European conditions.

Safety: Stable body with modern protective features

A head-on collision is the most common type of accident of all, which is why the Daewoo engineers paid a great deal of attention to the front structure of the Kalos. A stable, welded steel auxiliary frame serves as an additional load dissipater at the front and diverts the impact energy directly to the floor assembly. This made it possible, in combination with the very rigid passenger cell and special deformation zones, to significantly improve the impact safety despite the short front section.

For effective protection in the event of a side-on crash, special steel tubes have been integrated in all four doors to provide a stable barrier and prevent anything penetrating the interior. The reinforced connection between the floor assembly and the B-pillars also diminishes the consequences of such an accident. It goes without saying that the rear section of the Korean newcomer has been crash-optimized, too.
A driver airbag with a gas volume of 60 liters, as well as a 120-liter passenger airbag are standard. The comprehensive safety equipment for both model versions can be optionally extended by side airbags at the front, each with 21 liters. All the seats are fitted with three-point safety belts, with the one in the middle at the back featuring an elaborate construction: the roll-up device is positioned on the left on the C-pillar, from where the belt passes through a plastic guide on top of the rear-seat backrest to two belt buckles at pelvis level on the right and left. The safety package is rounded off by the head restraints and the Isofix child seat fixtures.

Cultivated powertrain: Superb traction, low noise

With its high-traction 1.4-liter four-cylinder gasoline engine and standard five-speed gearbox, the Daewoo Kalos is certainly not lacking in temperament. The unit is a member of the so-called E-Tec engine family and has a capacity of exactly 1,399 cm³. The 61 kW/83 hp powertrain takes the front-wheel drive Kalos to a top speed of 170 km/h, taking 13.3 sec to cover the standard sprint from 0 to 100 km/h. The new Korean weighs in at approx. 1,000 kg, and with so much power in reserve it stays completely relaxed even on longer journeys.

In addition to this harmonious development of power - the maximum torque of 123 Nm is available at just 3,000 rpm - the Daewoo development team was particularly keen to attain good noise and vibration damping:

  • The power train is suspended at four points with rubber bearings, the front auxiliary frame decouples the engine from the body.
  • A low-noise toothed belt drives the overhead camshaft.
  • The engine block is made of rugged, low-noise, low-vibration gray cast iron with very rigid cylinder walls.
  • At 6.5 liters, the air filter housing has a comparatively high volume so that particularly the high-frequency tones in the intake noise are effectively filtered out.
  • Instead of steel as before, the oil sump is made of structured aluminum, which reduces the droning noise otherwise generated by the air flow.
  • The engine hood and rear bulk of the engine compartment have multi-layer insulation in some areas.

The Kalos unit complies with the Euro 3 emissions standard. In the MVEG cycle, it consumes 6.5 liters of super grade fuel over 100 kilometers in out-of-town conditions, and has an overall average of 7.5 liters. In combination with the 45-liter tank, this gives the car a considerable range of 600 kilometers.

Reliable partner: True-to-line chassis and effective brakes

The modern wheel suspension of the new Kalos - at the front, individually on McPherson struts, at the rear, on a torsion beam axle - and the sophisticated chassis geometry with its comparably long wheelbase and wide track, make for an optimum combination of driving safety and comfort. The Daewoo engineers designed the chassis specifically for European conditions on the prooving ground of MIRA (Motor Industry Research Association) in the UK, and long-term testing throughout Europe confirmed that the selected setup was right.

On the front axle, ventilated disc brakes with a diameter of 236 millimeters slow down the Kalos effectively and without any fading effect. At the rear, 200-millimeter drum brakes are used. A four-channel ABS system with electronic brake power distribution is available as an optional extra for both variants, and this enhances the active safety still further. The Kalos SE is fitted with 155/80 R 13 tires, while the SX version has 175/70 R 13 as standard. 185/60 R 14 tires are an option.

The transmission for the rack-and-pinion steering is mounted on the front auxiliary frame, which improves steering precision. In addition, the Kalos comes with a hydraulic servo unit as standard. The power-assisted steering system is speed-dependent and thus offers the driver both comfort and maximum steering accuracy. At low speed, when parking for example, the steering force is very low, making the car easy to maneuver. As the speed increases, the influence of the power steering declines, enabling very accurate steering when driving out on the road.

Interview with Chang-Sun Yoo, Chief Daewoo Engineer

"Very High Comfort Thanks to Efficient Noise Damping"

Some 300 engineers and technicians were involved in the development of the new Daewoo Kalos. The Bupyong research and development center is situated to the west of the South Korean capital of Seoul. We talked to Chief Engineer, Chang-Sun Yoo, about the aims and objectives in designing the new model, and also asked him about the stringent testing and the particular specs for the European market.
Question: What was the main focus in developing the Daewoo Kalos?

Yoo: One of the main aims was to set a new standard in this vehicle class in the so-called NVH range (Noise, Vibration and Harshness), in other words to achieve a very high level of comfort through optimum noise and vibration damping. Even before the prototype stage we therefore optimized the engine suspension and intake system and laid down a comprehensive package of damping and insulating measures.
Question: Are there any technical qualities of which you are particularly proud?

Yoo: Among other things, the driving characteristics and the excellent handling. In the chassis area, we have made significant progress here with the modified front cross member and the torsion beam axle. Another strength of the Kalos is its packaging - despite its compact exterior dimensions, it offers a very spacious passenger compartment. And, as I have already mentioned, we are proud of the reduced engine and wind noise and the improved sound quality.
Question: What role did the particular requirements of the European markets play in the development of the Kalos?

Yoo: The striking contours of the Kalos are of European origin and stem from Italdesign. According to our market research, this goes down particularly well with customers in Europe. With features like side airbags, three-point safety belts on all seats, air-conditioning, heated exterior mirrors and split rear seat back, we have also complied with many of the specific wishes put forward by this group of buyers. Finally, the Kalos had to prove itself on test sites throughout Europe and overseas where it had to cope with a wide variety of climatic conditions and driving cycles.
Question: Can you give us some details of the testing procedures?

Yoo: In total, the 119 prototypes subjected to long-term testing covered nearly 2.2 million kilometers. The fine tuning of the chassis for the European versions was done in the UK. The vehicles underwent further testing outside South Korea on test sites in Arjeplog/Sweden, Granada/Spain, Idiada/Spain, Kapuskasing/Canada and Peking/China. We also ran, of course, a thorough program of safety and crash tests. In these realistic accident simulations, we crashed 31 prototypes and 39 pilot production cars for the benefit of our customers!


Biography
Chang-Sun Yoo was born on September 15, 1954, in Ilsan, Province Kyungki-Do, South Korea. After completing his studies in Precision Mechanical Engineering at Hanyang University in Seoul, he joined Daewoo Motor Company in 1979. Since 1996, he has been chief engineer of various vehicle lines and in this function responsible for the development of the new Kalos. C.S. Yoo is married and has two sons. His hobbies include fishing and stamp collecting.


Company and sales -- New Era has Begun for Carmaker Daewoo

  • Suzuki is General Motors' first alliance partner
  • Three plants and eight sales offices are being taken over

Soon after the launch of the new Daewoo Kalos, the newly founded GM Daewoo Auto & Technology Company is due to become operational in the fourth quarter of 2002. The relevant agreement between General Motors Corporation (GM) and the Korean Development Bank (representing the Daewoo creditors) was signed on April 30 this year. General Motors has responsibility for the corporate management of the new company and holds a 42.1 percent stake. Additional GM alliance partners, one of them is Suzuki with a stake of 14.9 percent, hold a total of 24.9 percent. The creditors of the former company hold the remaining 33 percent.

The agreements cover the takeover of three plants (Changwon/South Korea, Kunsan/South Korea and Hanoi/Vietnam) and eight foreign sales companies (Benelux, Germany, France, Italy, Austria, Puerto Rico, Switzerland and Spain). The new company also has the research and development center in Bupyon/South Korea and the central European spare parts warehouse near Breda in the Netherlands. Daewoo's Bupyong plant will supply the alliance company with cars and components for the next six years, and during this period the option exists for a takeover by GM Daewoo Auto & Technology Company.

David N. (Nick) Reilly (52), who was Chairman of the Board of Management of Vauxhall, up until August 1, 2001, will head the new company as its President and Managing Director. It will continue to be headquartered in Seoul/South Korea. The newly created European headquarters will be located in Zurich/Switzerland. Its employees will coordinate the branding activities and sales in the individual countries. Erhard L. (Hardy) Spranger will head the business of this European headquarters and thus aim to exploit synergy effects with General Motors Europe AG, which is also based there. Says Spranger: "With the setting up of the new GM Daewoo Auto & Technology Company, we will have a solid base from which we can look after our present and future Daewoo customers and drive our business forward. Daewoo has highly motivated employees and an attractive range of models and we will consistently build on this, starting with the Kalos."

The Daewoo brand has its roots in the National Motor Company, founded in 1937 as Korea's first car manufacturer on the site of the present plant in Bupyong. Cooperation with GM began with a joint venture from June 1972 to October 1992. The Asian company introduced the name Daewoo in 1983.

Daewoo is South Korea's third largest car manufacturer, selling around 506,000 cars worldwide in 2001. The plans are that the new company should initially have annual sales of around 5 billion US dollars.

CONTACT(S):
Eric Nève
+41 1 828 2981
eric.neve@ch.gmdat.com

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