GM’s Korean Unit Has ‘Very Profitable’ 2010 After Two Losses
General Motors Co.’s South Korean unit will post its first annual profit since 2007 helped by surging exports to Eastern Europe and other emerging markets, reported Bloomberg.
“GM Daewoo had a very profitable year,” Mike Arcamone, chief executive officer of GM Daewoo Auto & Technology Co., told reporters at the company year-end party in Seoul late yesterday, without elaboration.
The automaker will likely boost vehicle shipments, including unassembled cars, 17 percent this year to more than 1.8 million, Arcamone said, helped by demand for Chevrolet Cruze compacts, Spark minicars and Alpheon sedans. The Incheon, South Korea-based unit made losses in 2008 and 2009 because of wrong- way bets on currency hedging and slower sales amid the global recession.
GM Daewoo plans to roll out seven new models by the end of next year and to start selling Chevrolet cars in South Korea in 2011, Arcamone said. The CEO, appointed a year ago to turn around the money-losing unit, has set a goal of increasing its market share in South Korea to more than 10 percent this year.
Excluding exports of unassembled vehicles, GM Daewoo expects to sell more than 750,000 vehicles this year, Arcamone said. The automaker sold 680,305 vehicles in the first 11 months, 33 percent more than a year earlier, according to a statement.
GM owns a 70 percent stake in the South Korean unit, while Suzuki Motor Corp.holds 6.8 percent and SAIC Motor Corp., GM’s China partner, has 6 percent. Korea Development Bank, GM Daewoo’s main creditor, owns the remaining 17 percent.
More Industry

Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
Consumer Outlook on the Rise
Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.
Read More →
Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →