General Motors aims to sell 200 000 Daewoos in Western Europe to make up for declining sales of Opel models in the region.

General Motors aims to sell 200 000 Daewoos in Western Europe to make up for a sales decline of Opel models in the region.

The world's largest manufacturer and partners, including Suzuki, agreed in April to buy some assets of bankrupt Daewoo Motor for R12 billion. General Motors plans to set up a venture to control the South Korean company's assets and sell Daewoo-brand vehicles.

"The focus will be to improve Daewoo sales as quickly as we can," said General Motors Europe President Mike Burns.

The combined market share in Western Europe of General Motors' Opel, Vauxhall and Saab brands has fallen to 9,9 per cent this year from 12,2 per cent in 1997. The company said in July that its European unit would not make its target of cutting the 2002 loss in half from last year's R7,9 billion because of falling demand.

Sales of 200 000 Daewoo cars would amount to a 1,4 per cent market share in Western Europe. General Motors hopes to reach the target in a few years, Burns said, without giving details.

Daewoo's sales of Matiz, Lanos and other models in Western Europe fell 38 per cent to 128 431 vehicles in 2001 from 208 292 vehicles in 2000.

"I have no doubt they will be able to sell 200 000 cars if they offer them at extremely attractive prices," said Peter Schmidt, a car industry consultant in Warwick, England. "The image of Daewoo has been dented badly by the bankruptcy, especially in markets like Germany."

The manufacturer will build a network of dealerships in Britain using Vauxhall dealers and rely on current dealers in Italy and France. General Motors executives said they plan to get the sales network operating as soon as the Daewoo purchase is signed.

"If you look at the customer base, there's very little overlap," said Jonathan Browning, General Motors’ vice president of sales and marketing in Europe. "People who buy Daewoo cars aren't the same ones who buy Opels and Vauxhalls."

There are currently no plans to build Daewoos at General Motors plants in Europe or to sell Daewoos as Opel, Vauxhall or Saab models, Browning said.

General Motors also aims to expand sales of its current brands. The manufacturer's six-month sales in Europe fell 15 per cent from a year ago to 770 068 units.

Original article from Car