New GM-Daewoo Venture To Share Parts With Suzuki

Autoparts Report, Oct 3, 2002

GM-Daewoo Auto & Technology (GMDAT), which is scheduled to be formally inaugurated in the middle of October will work closely with GM's Japanese subsidiary Suzuki in parts procurement, according to a report in the Korea Herald.

GMDAT will be the product of GM's acquisition of Daewoo Motor assets earlier this year.

Citing company sources, the report says that the parts sharing scheme is designed to cut costs for both units. The report says that Suzuki is planning to buy 'general auto components' from GMDAT's parts suppliers.

Local reports have suggested that GM is aiming to see GMDAT breakeven in 2005, focusing on exports. GMDAT is reportedly looking for an aggressive growth path with more than 30 percent annual growth until 2004, bumping up production to over 500,000 vehicles annually by 2005.