GM Daewoo fully operates multiple retailer system

SEOUL, Jan. 21 (Yonahap) -- GM Daewoo Auto & Technology Co., the South Korean
unit of General Motors Co., said Thursday that its multiple retailer system is in
full operation nationwide, aiming to improve the automaker's domestic sales and
market share.
GM Daewoo sold 578,758 units last year, down 34.4 percent from the year before.
The sharp decline in 2009 sales comes as GM Daewoo is grappling with a precarious
liquidity condition as its U.S. parent emerged from bankruptcy protection in
mid-2008.
The company said its three new retailers -- Daehan Motors, Samhwa Motors and Aju
Motors -- are now engaged in normal vehicle sales after finalizing contracts with
existing dealerships.
The three companies, along with Daewoo Motor Sales Corp., are selling vehicles
and offering customer service.
There are 301 dealerships for GM Daewoo vehicles in South Korea.
"The new sales network is already paying dividends for GM Daewoo, as sales are on
track," said Kim Sung-kee, managing director of domestic sales and marketing at
GM Daewoo.
"Our robust launch schedule for this year combined with a renewed focus on the
customers through this new network will benefit GM Daewoo today and in the
future."
GM Daewoo's comprehensive sales network is supported by an integrated vehicle
sales, logistics and customer management system, ensuring a higher level of
customer service, the carmaker said.
So far, little progress has been reported in talks between South Korea's
state-run Korea Development Bank (KDB) and GM over the U.S. carmaker's plea for
financial assistance worth 1 trillion won to the ailing GM Daewoo, which GM
acquired in 2002.
KDB, the second-largest shareholder of GM Daewoo, is worried about the local
carmaker's tenuous position as its U.S. parent is focusing resources on its U.S.
plants.
As part of conditions set in negotiations between KDB and GM, the South Korean
bank requested that the U.S. manufacturer guarantee GM Daewoo's production volume
for the next five years. GM has refused to do so.
ygkim@yna.co.kr
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