ID :
30276
Fri, 11/14/2008 - 18:21
Auther :
Shortlink :
https://www.oananews.org//node/30276
The shortlink copeid
GM Daewoo delays launch of new models, union says
SEOUL, Nov. 14 (Yonhap) -- GM Daewoo Auto & Technology Co., the South Korean unit of General Motors Corp., will delay the launch of new models by another year in reaction to a deep slump in sales amid a looming global recession, the company's union said Friday.
The delay of new models came after GM Daewoo, South Korea's No. 3 automaker, said
it will shut down all of its five plants here from Dec. 22 to Jan. 4 to curtail
production, the first such suspension since GM purchased bankrupt Daewoo Motor in
2002.
GM Daweoo had originally planned to introduce two new models, a mid-size sedan
and a crossover vehicle, next year. But the launch has been pushed back to 2010,
the union said in a newsletter.
In a meeting on Oct. 27, GM Daewoo Chief Executive Officer Michael Grimaldi asked
the union to understand the delay, saying the current business conditions are
more serious than those in the 1997/97 Asian financial crisis, when the parent of
Daewoo Motor, Daewoo Group, was collapsed.
"The current crisis situation is more serious than that in 1997," quoted as
Grimaldi saying by the Korean-language newsletter.
Grimaldi cited a "shortage of cash" as one of major reasons for the delay, the
newsletter said.
Ryu Jo-hwan, leader of the GM Daewoo union in the city of Changwon, 398
kilometers southeast of Seoul, accused the Detroit-based GM of passing its
management failure to the South Korean unit.
"GM shouldn't repeat its failure at GM Daewoo," Ryu said in the newsletter.
In addition to the two-week closure, GM Daewoo plans to halt production at some
of its plants for up to 45 days, local media reported.
Officials at GM Daewoo declined to comment on the reports.
GM Daewoo sells about 95 percent of its vehicles abroad under the GM's Chevrolet,
Holden and Buick brands.
As demand for vehicles in developed markets such as the United States and Europe
dropped amid the deepening global financial crisis, GM Daewoo has been feeling
the pinch.
Last month, GM Daewoo said its auto sales slipped 11.3 percent from a year ago to
73,180 units.
(END)
The delay of new models came after GM Daewoo, South Korea's No. 3 automaker, said
it will shut down all of its five plants here from Dec. 22 to Jan. 4 to curtail
production, the first such suspension since GM purchased bankrupt Daewoo Motor in
2002.
GM Daweoo had originally planned to introduce two new models, a mid-size sedan
and a crossover vehicle, next year. But the launch has been pushed back to 2010,
the union said in a newsletter.
In a meeting on Oct. 27, GM Daewoo Chief Executive Officer Michael Grimaldi asked
the union to understand the delay, saying the current business conditions are
more serious than those in the 1997/97 Asian financial crisis, when the parent of
Daewoo Motor, Daewoo Group, was collapsed.
"The current crisis situation is more serious than that in 1997," quoted as
Grimaldi saying by the Korean-language newsletter.
Grimaldi cited a "shortage of cash" as one of major reasons for the delay, the
newsletter said.
Ryu Jo-hwan, leader of the GM Daewoo union in the city of Changwon, 398
kilometers southeast of Seoul, accused the Detroit-based GM of passing its
management failure to the South Korean unit.
"GM shouldn't repeat its failure at GM Daewoo," Ryu said in the newsletter.
In addition to the two-week closure, GM Daewoo plans to halt production at some
of its plants for up to 45 days, local media reported.
Officials at GM Daewoo declined to comment on the reports.
GM Daewoo sells about 95 percent of its vehicles abroad under the GM's Chevrolet,
Holden and Buick brands.
As demand for vehicles in developed markets such as the United States and Europe
dropped amid the deepening global financial crisis, GM Daewoo has been feeling
the pinch.
Last month, GM Daewoo said its auto sales slipped 11.3 percent from a year ago to
73,180 units.
(END)
