South Korea will lose its most famous automotive brand Daewoo by the end of March 2011. General Motors, Daewoos parent company, terminates the South Korean nameplate in favor of Chevrolet. The move comes in line with GMs strategy to market Chevy as a key global brand.
According to the official press release, GM Daewoo Auto & Technology Co. will henceforth be known as GM Korea. Besides the name changeover, Daewoo will be undergoing a thorough restructuring. The first vehicle with the Chevy bowtie to go on sale in South Korea will be the Camaro. Scheduled for launch in the first quarter of the year, the muscle car is one of eight new Chevrolet models to enter the South Korean market in 2011.
We have studied the brand issue in depth for a long time and have come to the conclusion that launching a new brand strategy and making Chevrolet our primary brand is good for all stakeholders, including especially Korean consumers, GM Daewoo spokesperson stated.
Even though vehicles produced under the Daewoo nameplate have deserved a poor reputation in the United States, the Korean automaker made inestimable contribution to GMs compact car division, being involved in developing the Chevrolet Cruze, Spark and Sonic small cars.
Daewoos domestic market was the last to sell vehicles under the GM Daewoo brand. With the major rebranding GM hopes to increase its market share in South Korea to 10 percent (currently 9 percent), despite the fact that Korean customers traditionally favor local brands.