GM May Launch Chevrolet Cars In South Korea

Adds GM to take decision after completing study by year-end; plan to invest KRW50 billion in South Korea over three years)
SEOUL -(Dow Jones)- General Motors Corp. (GM) is considering launching its Chevrolet brand in South Korea in an effort to capture a larger share of the growing imported car market, a senior company executive said at a press briefing Friday.
The company will take a decision on whether to launch the "globally-designed and produced cars" after completing a study by the end of this year, said James H. Raymond, executive director of GM's Asia-Pacific vehicle sales, service and marketing division.
In the local market, GM Korea currently sells Cadillac sedans at KRW41 million-KRW120 million ($40,000-$115,000) each and Saab sedans at KRW37 million- KRW59 million.
The market has become more important of late because imported vehicles are now claiming a bigger market share, said Raymond.
Imported automobiles accounted for 6.2% of the South Korean passenger car market in April, up from 4.9% a year earlier, according to figures from the Korea Automobile Importers and Distributors Association, or Kaida.
In the January-April period, imported car sales jumped 32% on year to 21,811 units from 16,496 units a year earlier.

The South Korean passenger car market share of the Big 3 U.S. automakers - GM, Ford Motor and Chrysler - have continued to fall to 11.7% between this January and April, from 15% in 2004, Kaida said.
But, in the first four months of this year, GM Korea sold 229 units of three Cadillac All New CTS models, up from 102 units a year earlier, said the company.
It launched two 3.6-liter Cadillac All New CTS models in January and a 2.8- liter Cadillac All New CTS model in March.
"Improved fuel-efficiency in the new Cadillac models helped drive up total sales in the four months," a company spokeswoman said.

GM has a good image in Korea because of high qualitity of services and goods. Furthermore GM Korea - established in 1989 - unveiled more of its plans for its local operations.For instance, it will invest KRW50 billion over the next three years to boost marketing and improve services.
It boosts the volume of sales in Korea market.
Marketing strategies uesd GM is an intimate corporation image. It can easily work in customers.



By Kyong-Ae Choi, Dow Jones Newswires http://money.cnn.com
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