Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
GM, Ford in race for Daewoo, Korea - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Feb 22, 2000

    GM, Ford in race for Daewoo, Korea

    In an interview to a leading business daily, General Motors CEO - Robert Wagoner Jr., revealed that his company along with Ford Motors was in the running for the takeover of Daewoo Motors, Korea.

    Daewoo Motors of Korea has a presence in the Indian auto segment through the Cielo and Nexia (in the mid-sized car segment) and the Matiz (small car). General Motors (GM) India, already has presence in the premium mid-sized car segment through the Opel Astra, while Ford has the Escort (in the premium mid-sized segment) and the Ikon at the lower end of the mid-sized segment.

    As reported in the interview, Wagner Jr. believes that with its past links with Daewoo Motors Korea, GM stands a very good chance of taking over the company, although Ford is also in the running.

    If and when GM does manage to acquire Daewoo Motors, it will enjoy access to Daewoo's brands - Cielo, Nexia in the mid-car segment, which in addition to its current (Opel Astra) and proposed launches (975 cc Corsa) will give it a wider range of brands in the mid-sized car segment.

    On the same lines, Ford's takeover of Daewoo Motors will enhance Ford's basket of brands to include Daewoo's brands (Cielo, Nexia) with its own (Escorts, Ikon) in the mid-sized car segment.

    In addition to the mid-sized car segment, GM's or Ford's acquisition of Daewoo will give both companies access to Daewoo's small car - Matiz and light commercial vehicles (LCVs). Neither GM nor Ford have a presence in the fast-growing small car segment. So from that angle, Daewoo's acquisition is critical for both as far as the Indian market is concerned.

    Moreover, both GM and Ford will also be able to utilise Daewoo India's production capacity of over 70,000 units p.a. in Ghaziabad, Uttar Pradesh. Daewoo also has a manufacturing facility for 300,000 engines and transmissions each.

    Daewoo India's existing infrastructure will save GM/Ford the trouble and cost of establishing new plants. In addition to the economies of scale in production, GM/Ford will also be able to exploit Daewoo India's marketing and distribution networks.

    However, given GM's worldwide tie-up with Suzuki Motors of Japan for the small car, combined with Suzuki's presence in India through Maruti Udyog, will give GM a bigger edge over Ford if its acquisition of Daewoo goes through.



    Equitymaster requests your view! Post a comment on "GM, Ford in race for Daewoo, Korea". Click here!


    More Views on News

    Tata Motors Ltd: Another Disappointing Quarter, Management fails to Perform! (Quarterly Results Update - Detailed)

    Aug 14, 2017

    Tata Motors Ltd disappoints again for both India and JLR business. Management commentary indicates a slow year ahead.

    Tata Motors Ltd: Dismal Quarter, Long way to go! (Quarterly Results Update - Detailed)

    Feb 16, 2017

    Tata Motors Ltd has announced its financial results for the third quarter of the financial year 2016-17 (3QFY17).

    Maruti Suzuki Ltd: Bumpy First Quarter. GST dents Margins! (Quarterly Results Update - Detailed)

    Aug 2, 2017

    GST realted cost impacts Margins, Management expects good year ahead.

    Hero Motocorp Ltd: Riding on the Scooters Growth, Maintains Margins! (Quarterly Results Update - Detailed)

    Aug 1, 2017

    Good Recovery in the Scooters market, expects pick up in exports too.

    Bajaj Auto Limited: Recovery in Exports but Domestic Disappoints! (Quarterly Results Update - Detailed)

    Aug 1, 2017

    New Export Markets picking up, Management expects good recovery in domestic Three wheeler market.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 21, 2017 (Close)


    • Track your investment in TATA MOTORS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks


    Detailed Quarterly Results With Charts