GM Daewoo has made a phoenix-like recovery from financial oblivion. Thanks to GM's last minute intervention, the Korean firm was able to loosen the noose being placed around it by creditors, on October 17th last and begin to look to a much brighter future.
After 18 months of uncertainty, controlled by administrators, the firm is now busy expanding its model line-up and planning for a much healthier future. GM Daewoo is now undergoing a Lazarus-like recovery and, now financially secure, it has identified its position in the market and is busy improving its product line.
The coming months will see the launch of derivatives of the new Nubira - a hatchback version in March 2004 and a wagon version in June/July. Then after a facelift of the Tacuma in autumn 2004, we can expect to hear a lot from GM Daewoo in 2005.
That year will se the arrival of the three-door Kalos and its long-awaited mini-SUV called Scope. Daewoo has witnessed its share of its important home market shrink from 25 per cent to nine per cent over four years, and partly blames the lack of a mini-SUV or a large car. According to Erhard L Spranger, executive in charge at GM Daewoo Europe, "the need now is to invest heavily in product development and bring in some European flair and the right design perspectives."
Daewoo's target is for European sales of 200,000, a 50,000 rise on present sales giving it a 0.9 per cent market share in Europe.
However, senior management is keen to stress a realistic approach to growing market share. GM Daewoo vice-president Alan Batey says of future model expansion, "while ideas of coupés and sportier loss-making models may help brand presence, our primary task is to get the basics right."
GM has clearly identified its the Korean marques position in the GM family in Europe, targetting the lower end of a trio of brands where Opel is the mid-range and Saab the upper end.
So to the new Nubira: it's a small family car targetting the likes of the Opel Astra, Ford Focus and Skoda Octavia. While prices have yet to be confirmed here, GM Daewoo Ireland's Tom McQueirns says the model actually comes to the market cheaper in real terms to the price of the original Nubira when the brand was introduced to Ireland by the current franchisees.
This is the first Daewoo model with direct GM input, although the project itself had been running since November 1999, long before GM expressed an interest.
Two models will be available in Ireland powered by a choice of 109 bhp 1.6-litre and 122 bhp 1.8-litre petrol engines. A 1.4-litre car will be on the Irish market next year. GM Daewoo will not have diesel until 2005.
We found the Nubira to be a well-built and sturdy performer, with both engines capable of carrying us along at a steady pace. Interior is tastefully laid out and specification levels are quite good for its class. The automatic version of the 1.8-litre engine was particularly impressive.
However the key factor here, as with all cars in its class, will be price. For this we must wait until July 3rd. However, it's worth noting that in Germany prices start at €16,500 for the 1.6-litre. That's just below the price of a four-door saloon version of the Astra, and slightly more than a similar Ford Focus.
