GM to Drop Daewoo Logo
Tired of negative publicity stemming from the defunct Daewoo Group, General Motors Co. has decided to drop the Daewoo name from its South Korean unit, a remnant of the ill-fated Daewoo Motor conglomerate it took over in 2002, The Wall Street Journal reported.
GM has decided to brand all new and upgraded models with the Chevrolet badge, discarding the "GM Daewoo" brand on vehicles made by GM Daewoo Auto & Technology. The rebranding strategy is expected to enhance its presence in Asia's fourth-biggest economy and boost domestic sales.
Those who remember the boom years of Daewoo Group in the 1990s may be saddened by the decision, but car buyers in their 20s and 30s who own or plan to buy a GM Daewoo car often pay to change the nameplate to Chevrolet from GM Daewoo. In South Korea, GM Daewoo cars have been less preferred than models from its bigger rivals such as Hyundai Motor Co. and Kia Motors Corp., which together controlled 78.4% of the domestic automobile market as of Dec. 31.
"We believe new models carrying the Chevrolet badge will make a strong appeal to such young customers, in particular," company spokeswoman Lim Young-mi said. GM Daewoo will complete the name change by the end of March.
All of its eight models to be launched this year will carry the Chevrolet brand badge except for three cars—the Alpheon upper-midsize size sedan and the Labo and Damas mini cars—which GM will keep as "independent" brands.
GM Daewoo's domestic sales fell to an "unacceptable" level in 2009 following the economic downturn that began in late 2008. Competition became tougher when the country's dominant car maker, Hyundai Motor Group, came up with a series of competitive new models. Analysts say import brands are set to place more new models with lower price tags to woo South Koreans.
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