GM Daewoo to Invest W1 Trillion Next Year

GM Daewoo Auto & Technology will invest a total of 1 trillion won in facilities and research and development next year, doubling the expenditure for this year. The aggressive investment plan comes a year after the automaker's foundation as a major step toward stabilization and management normalization and has entered into an aggressive growth stage.

Nick Reilly, president & CEO of GM Daewoo, said, "Initially, we were focused on organizational stability and the successful integration of GM and Daewoo Motor. Because of the passion of our GM Daewoo team members, and encouragement from our customers, we were able to move beyond organizational stability and integration as issues and were able to turn in a number of noteworthy results for our first year in operation.

``We increased production and sales, operated a day and night double-shift system, improved quality and productivity, rehired dismissed former employees and recruited new employees. Although we have much left to do, we feel the first year was very successful."

Despite an unstable environment in the domestic auto industry due to the slumping economy, GM Daewoo's sales have increased significantly.

Fueled by new products and aggressive marketing campaigns, including test-drives for the Lacetti, the Diamond Model Series Festival and the corporation's focus on safety.

Market share has expanded dramatically. GM Daewoo's share of the domestic auto market in which it competes increased to an average of around 25 percent and reached a high of 27 percent in August, up from an average of around 20 percent during the same period in 2002.

During its first year, GM Daewoo saw a sharp increase in exports. Following its launch, GM Daewoo reorganized its overseas sales corporations and selected region-specific competitive GM global brands including Daewoo in order to minimize investment in establishing a global distribution network, and expanded its export volume.

As a result, GM Daewoo's exports increased 49.2 percent to 260,625 units during the period from January to September 2003, up from 174,701 units during the same period in 2002.

GM Daewoo is expected to produce and sell a total of 600,000 units _ 400,000 finished cars (130,000 units for domestic sale and 270,000 units for export) and 200,000 CKDs or vehicle kits. This figure is an increase of 59 percent from the 377,000 units in 2002. The company also plans to produce and sell more than 800,000 units next year.

During the past year, GM Daewoo also recruited 1,200 employees to facilitate its sales increase and has begun a double-shift operation at the Pupyung and Kunsan plants for the first time in four years due to the increase in production volume.

The newly recruited employees include 300 former employees who were dismissed by Daewoo Motor in February 2001 and rehired at the end of last year, 416 dismissed former employees rehired in July this year, and 350 new employees. The company's large-scale recruitment is expected to continue into next year.

Since its formation, GM Daewoo has placed priority on Research & Development and new car launches. The company launched the 2.5 liter 'L6 Magnus' last November, the 'Lacetti', a mid-range sedan that same month, and it established new engine production facilities at the Changwon plant with an investment of 120 billion won.

As for new car launches, GM Daewoo introduced the ``Lacetti Hatchback''at the Frankfurt Motor Show for the European market and at the Pusan Motor Show for the domestic market.

The company is also planning to introduce a new mini car in the domestic market in the second half of next year. The company is moving fast to compete in additional segments with the ongoing development of a large-sized car, an SUV, a diesel engine, and diesel cars.

Also in its first year, GM Daewoo invested more than 500 billion won in R&D and facility expansion, recruited more than 200 new technical employees, and relocated and expanded its design center in the Pupyung plant in 2003.

GM Daewoo is planning to invest nearly 1 trillion won in R&D and facilities next year. The company is also planning to develop and mass-produce large-sized luxury cars, SUVs, and diesel cars over the next two or three years beginning in 2004 with an investment of more than $1 billion.

Meanwhile, GM Daewoo announced a new corporate identity to improve its corporate image, installed new signage at sales agencies and maintenance centers nationwide, and produced a corporate image advertisement under the title of 'New Wind'. In addition, the company has been conducting innovative services such as the 'Charm Service' to catch a customer's attention.

GM Daewoo has restructured its organization and has operated its business in cooperation with its divisions for one year since its launch. GM Daewoo introduced advanced GM systems throughout all sectors including production, purchasing, finance, personnel, education, and safety. GM Daewoo has worked to create an open, transparent and global corporate culture.