Global Coalition in Motor Industry

Hyundai Motors and Daimler Chrysler collaborated corporation launching is waiting for its countdown and this seems to be a sign of Daimler Chrysler Group, a prominent car manufacturer, investment getting into stride.

GM Daewoo is also propelling its plan to leap to an `exporting company through global network of General Motors USA. Global collaboration is becoming an `issue` among domestic car industry circle.

▽Daimler, investing 400 million Euro = Daimler & Hyundai Car Corporation launching is remaining only negotiation between the labor and management. The bargaining will be settled soon, thus the investment agreement between Daimler and Hyundai will be concluded within next month, and the collaborated corporation will launch officially.

Daimler is investing 400 million Euro, and Hyundai will invest Jeonju factory. The collaborated corporation has set its goal to manufacure 100,000 cars annually from 2005 after mass production of engines at Jeonju factory in 2004.

Daimler M&A person in charge, executive director notified on the 24th, “The strategic cooperation with Hyundai motors will be continued to additional investment in the future.”

Daimler requested for 80,000 pyeong of site at Jeonju Science Industry Complex in Wanju where the engine factory is located for foreign investment district before its large scale investment. The government will go through consideration within the year to designate the foreign investment district.

Samsung securities analyst Kim Hak-ju prospected, “The combination of Hyundai Motor`s price competitive power and Daimler technology will result in good performance in China, the largest market” Hyundai Motor is also building 4-cylinder gasoline engine factory for compact cars in Michigan USA with Daimler.

▽GM Daewoo, utilize global network = GM Daewoo`s SUV (Sports Utility Vehicle) expected to be released in 2005년 is `multinational`. The platform (frame) will be provided by GM`s Saturn, and the engine by `FGP`, Partner Company of GM and Fiat and GM Daewoo. The development responsibility including design will be assigned to GM Daewoo and Opel, GM`s Germany affiliate. Motor manufacturers of 4 countries in the least are participating in the business.

GM Daewoo exported 220,000 cars up to this August, the quantity almost equivalent to export total last year, is expecting further increase of 40% next year. It is foreseeing that Magnus, Lacetti, and Kalos will sell from 100,000 ~180,000 through the 5,000 or so North America dealer network.

GM Daewoo says, “The dealer network is incomparable to the 550 or so dealers that former Daewoo Motors had in 1998 when it advanced to North America market.”

Jong sik Kong Na-Yeon Lee kong@donga.com larosa@donga.com