Post by HondaTech on Jun 27, 2004 12:25:29 GMT -5
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GM Says S.Korea Could Be Asian Hub
June 25, 2004 04:42:00 AM ET
SEOUL (Reuters) - The chairman of General Motors Corp. predicted a swift return to growth for South Korea's depressed car market and said the country could emerge as the hub for GM's Asia-Pacific operations.
Rick Wagoner, chairman and chief executive of GM, also told reporters the world's top car maker was committed to bolstering its facilities and product line-up in South Korea.
``We regard Korea as an important market for General Motors,'' said Wagoner at a press conference. ``GM Daewoo (Automotive & Technology) is a valuable source of research and development, engineering, design, manufacturing, and quality expertise.''
``These functions show Korea is growing as a hub of Asia-Pacific operations,'' Wagoner said. ``Despite current sluggish economic conditions, we do expect Korea will reassume rapid growth shortly.''
Wagoner's remarks came after he said on Wednesday GM planned to move its Asia-Pacific headquarters from Singapore to Shanghai by January 2005 and spend $250 million with a local partner to expand a design center in China.
GM, a distant second to Volkswagen AG in China's car market, said the spending was part of a planned $3 billion investment over the next three years in the world's fastest-growing major car market.
In South Korea, GM Daewoo has pledged to invest $1.5 billion in the next few years to produce new models and diesel engines.
The investment, scaled up from an initial $1 billion, was seen by analysts as a bid to raise the competition against top local auto maker Hyundai Motor Co and its affiliate, Kia Motors Corp
Nick Reilly, GM Daewoo's CEO who also took part in the press conference, said: ``Through our investment in GM Daewoo and the growth of our important business, we are making an important statement of our long-term commitment to Korea.''
NO SSANGYONG BID
Wagoner said GM had no plan to bid directly for Ssangyong Motor Co at this time after it failed to be picked as a preferred bidder for the sport utility vehicle last year.
An initial deal to sell Ssangyong to Chinese chemicals group Blue Star fell apart in March because of pricing differences and creditors have resumed sale talks with foreign investors, including Blue Star and Shanghai Automotive Industry Corp (SAIC).
``I'm sure that if SAIC is successful in this acquisition, then we would be very interested in the plant,'' Wagoner said.
SAIC is GM's main joint venture partner in China.
Meanwhile, Wagoner said he could not pin down an exact date for the acquisition of a plant in Pupyung, southwest of Seoul. The plant is the former Daewoo Motor's oldest and biggest but was left out of the deal when GM bought the bankrupt Korean car maker in 2002.
Wagnor said there had been significant improvements at the Pupyong plant in areas that GM had wanted to see progress before purchasing the plant, including labor stability and productivity.
``We're very pleased with the progress and hope that we could continue that and then extend relations going forward,'' he said, adding, however, that now was not the time to make a final decision.
© 2004 Reuters
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GM Says S.Korea Could Be Asian Hub
June 25, 2004 04:42:00 AM ET
SEOUL (Reuters) - The chairman of General Motors Corp. predicted a swift return to growth for South Korea's depressed car market and said the country could emerge as the hub for GM's Asia-Pacific operations.
Rick Wagoner, chairman and chief executive of GM, also told reporters the world's top car maker was committed to bolstering its facilities and product line-up in South Korea.
``We regard Korea as an important market for General Motors,'' said Wagoner at a press conference. ``GM Daewoo (Automotive & Technology) is a valuable source of research and development, engineering, design, manufacturing, and quality expertise.''
``These functions show Korea is growing as a hub of Asia-Pacific operations,'' Wagoner said. ``Despite current sluggish economic conditions, we do expect Korea will reassume rapid growth shortly.''
Wagoner's remarks came after he said on Wednesday GM planned to move its Asia-Pacific headquarters from Singapore to Shanghai by January 2005 and spend $250 million with a local partner to expand a design center in China.
GM, a distant second to Volkswagen AG in China's car market, said the spending was part of a planned $3 billion investment over the next three years in the world's fastest-growing major car market.
In South Korea, GM Daewoo has pledged to invest $1.5 billion in the next few years to produce new models and diesel engines.
The investment, scaled up from an initial $1 billion, was seen by analysts as a bid to raise the competition against top local auto maker Hyundai Motor Co and its affiliate, Kia Motors Corp
Nick Reilly, GM Daewoo's CEO who also took part in the press conference, said: ``Through our investment in GM Daewoo and the growth of our important business, we are making an important statement of our long-term commitment to Korea.''
NO SSANGYONG BID
Wagoner said GM had no plan to bid directly for Ssangyong Motor Co at this time after it failed to be picked as a preferred bidder for the sport utility vehicle last year.
An initial deal to sell Ssangyong to Chinese chemicals group Blue Star fell apart in March because of pricing differences and creditors have resumed sale talks with foreign investors, including Blue Star and Shanghai Automotive Industry Corp (SAIC).
``I'm sure that if SAIC is successful in this acquisition, then we would be very interested in the plant,'' Wagoner said.
SAIC is GM's main joint venture partner in China.
Meanwhile, Wagoner said he could not pin down an exact date for the acquisition of a plant in Pupyung, southwest of Seoul. The plant is the former Daewoo Motor's oldest and biggest but was left out of the deal when GM bought the bankrupt Korean car maker in 2002.
Wagnor said there had been significant improvements at the Pupyong plant in areas that GM had wanted to see progress before purchasing the plant, including labor stability and productivity.
``We're very pleased with the progress and hope that we could continue that and then extend relations going forward,'' he said, adding, however, that now was not the time to make a final decision.
© 2004 Reuters