Korean Auto Industry News

08/30/96

Manufacturers Plan to Produce Seven (or more) New Models Through 1997

Comline reported that five Korean auto companies will introduce up to 10 models by the end of 1997. The companies are: Hyundai, Kia, Daewoo, Ssangyong, and Asia Motors.

Daewoo, Korean producer of the Lemans, plans three vehicle introductions, which range from a small car to a mid-sized passenger car. The company will replace the Lemans in November with two 1,500cc versions of its T-100 (a four door sedan and a three to five door hatch-back). A round-bodied J-100 (sedan and wagon) will replace its Espero during the first half of 1997. By years end, 1997, Daewoo will replace its mid-size Prince with the V-100. The company will continue to produce the Espero and the Prince for up to two years after it introduces the substitute models.

Hyundai joins the recreational vehicle craze by introducing its A1 mini-van late this year or early next. The A1 resembles a Chrysler mini-van and will be available with either gasoline or diesel engines. Hyundai will also unveil two light passenger car models, one with an 800-cc engine for domestic sales, and one with a 1,000cc engine for export.

Kia will shoot for the large passenger car market by adding a T3 to its its conventional model line-up. Kia co-developed the T3, with Mazda of Japan. The car will use a 3,000-cc gasoline engine.

Ssangyong will also introduce a large passenger car model in mid-1997. The car has been under development since 1993 and is called the "W Car Project". The W car is based on the E-class of Mercedes-Benz of Germany, and will be available with three gasoline engines of different sizes: 3,200cc, 2,300cc, and 2,000cc.

Korean Carmakers Try to Cut Time from New Model Development

Comline has reported that Korea's top three passenger car makers (Hyundai, Kia and Daewoo) have entered into competition to see who can cut the time necessary to develop a new car. Currently new car development in Korea averages 4-5 years. The carmakers want to cut that time to 30 months, or 2.5 years.

So far Hyundai has reduced the development period the most, although the time it takes changes according to the types of cars Hyundai is trying to crank out. Hyundai's current average is 48 months.

Kia Motors hopes to reduce its development time to 40 months by 1998, and to knock it down to 30 months by 2001. The company will double its research staff from the current 2,000 to 4,000 by 1998, and will equip its test facilities so they can producing 200 test models and 130 clay models annually.

Daewoo Motor wants to cut development time from its current 56 month average to about 30 months. Daewoo said it developed its new T100 in 30 months.

Paul Dever -- The Auto Channel