Sunday, May 31, 2009

Will GM's bankruptcy adversely affect GM Daewoo?

Did you know that one of Korea's largest automakers is actually a US-owned company? (Obama doesn't.)

That's right, the GM in "GM Daewoo" is that same GM in Michigan. Who knew?! (Obama didn't.)

Anyway, folks in Korea, home of GM Daewoo, should pay attention because GM is planning to make a "B-car" in the United States (in case you're not aware, a B-car is a really small, fuel efficient car that, if you bought four of them, could be like roller skates for a Hummer, also made by GM).

This apparently is part of the negotiations with the unions and the government, where if Washington is going to bail out Detroit, they want more cars built by Americans in America. You know, the kind of stuff that uber-nationalistic Korea would get rided for.

Anyway, it's not entirely clear if this would have any adverse effect on GM Daewoo. After all, the new plants in America may be necessary to fill rising demand in America, without any significant long-term drop in the number of vehicles manufactured for international markets by GM Daewoo. We shall see.

There is more on the effects of GM's bankruptcy on Korea here.

[above: The Chevrolet Aveo, known in Korea as the Daewoo Kalos, is one of General Motors' current B-cars.]

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