Renault Samsung unveils new-look SM3 subcompact

Seoul August 24, 2005; Kim So-hyun writing for the Korea Hearald reported that Renault Samsung Motors Co.'s face-lift of the SM3 subcompact car hits showrooms today, aiming at annual domestic sales of 25,000 units.

Renault Samsung's first diesel engine will be fitted into the SM3 New Generation in November, and will be sold abroad as well, according to chief executive Jerome Stoll.

The nation's smallest automaker owned by the French Renault SA, currently exports only around 3,000 cars a year to South America and the Middle East while its sales at home jumped 42 percent to 56,000 units in the six months to June, thanks to the launch of two new models; the SM7 and the new SM5.

"Our exports will show big growth from next year. As a mid-term plan, we aim to export about a third of the total production volume," said Jerome Stoll.

The Korean arm of the Renault-Nissan Alliance has a limited export market as it needs to avoid competition with products sold by parent Renault and partner Nissan.

SM3 New Generation

The SM3 design is based on the platform of Nissan's Bluebird Sylphy, which was sold in Japan, North America and Europe.

The SM3 New Generation, which comes seven and eight months after the new SM5 midsize and the SM7 large sedan, respectively, targets customers in their 20s and 30s with a sportier design.

Competitors Hyundai Motor Co. and GM Daewoo Auto & Technology Co. are also scheduled to unveil new compacts next month to stimulate the sluggish demand for small cars.

Hyundai plans to launch the next generation Verna and GM Daewoo said it will unveil the new model named Gentra.

While the average monthly sales volume of large and midsize vehicles such as the Hyundai Grandeur and NF Sonata exceed 7,000 units, only one out of eight Korean small cars with an engine displacement below 2.0 liters - the Hyundai Avante XD - sells over 3,000 a month.

Priced between 10 million won ($9,733) and 14.7 million won ($14,306), the four trims of the SM3 New Generation - a 1.5-liter engine model and three 1.6-liter engine models - include basic features such as air-conditioning.

In addition to the new design and the option of three more colors, the SM3 New Generation features a slight improvement in the fuel efficiency to 12.6 kilometers per liter (manual transmission) and better maximum torque.

With its domestic market share on the rise, Renault Samsung plans to increase the current 158 sales outlets to 165 by the end of this year.

(sophie@heraldm.com)

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