Daewoo (Daewoo, more correctly "Teu"; box 대우/大宇- Big Universe listen)) is one of the largest South Korean chaebols (financial and industrial groups). The company was founded on March 22, 1967 under the name Daewoo Industrial. In 1999, it was liquidated by the South Korean government, but individual divisions continued to work as separate enterprises that became part of the General Motors concern.
Subdivisions
Daewoo was engaged in the production of electronics, household appliances, cars and weapons. The Daewoo group included about 20 divisions, before the collapse it was the second largest conglomerate in Korea after Hyundai, larger and Samsung. The Daewoo Group included several major corporations:
- Daewoo Electronics is an international electronics manufacturer (sub-sectors Daewoo Electronic Components Co. Ltd, Daewoo Electric Motor Industries Ltd., Orion Electric Co. Ltd.)
- Daewoo International is the largest Korean trading company, since 2010 - affiliated undertaking POSCO
- Daewoo Heavy Industries (DHI) - heavy industry
- Daewoo Shipbuilding & Marine Engineering - shipbuilding and marine engineering, now DSME, re-listed on the Korean Stock Exchange in 2001
- Daewoo Securities - insurance
- Daewoo Telecom - telecommunications
- Daewoo Construction - construction (built highways, dams and skyscrapers, especially in the Middle East and Africa)
- Daewoo Development Company is a construction company funded by cash from the Daewoo group and created to develop hotels (seven of them are built in Korea, China, Vietnam and Africa). The hotels were designed by the wife of the chairman of the company. The most luxurious was the five-star Daewoo hotel in Hanoi ($163 million) in 1996. There is a golf course and a swimming pool, considered the largest in Asia.
- Daewoo Motor - car manufacturing (sub-sector Daewoo Automotive Components Co. Ltd., Daewoo Bus Co., Ltd., Daewoo Commercial Vehicle Co. Ltd.).
- Daewoo Motor Sales - sale of Daewoo cars. GM cars and other brands were also sold in Korea (Architectural Iaan Div., SAA-Seoul Auto Auction sub-sectors).
- Daewoo Precision Industries
- Daewoo Textile Co. Ltd.
- IAE (Institute for Advanced Engineering) is a comprehensive research and development center.
A crisis
The Daewoo Group faced a deep financial crisis in 1998 due to the Asian financial crisis, increasingly deteriorating relations with the Korean government under President Kim Dae-jung, and their own financial miscalculations.
The Korean government has severely restricted access to cheap and almost unlimited credit. When the economic crisis forced most of the so-called. chaebols to cuts and optimizations, Daewoo, on the contrary, added 14 new firms to the already existing 275 branches - just a year after a huge loss ($ 458 million). At the end of 1997, the four largest concerns (chaebols) in South Korea were in debt, on average, five times the value of their shares. But while Samsung and LG (two other significant concerns) undertook massive cuts and restructurings during the next crisis year, Daewoo acted as if nothing had changed: as a result, the group's debt increased by 40%.
By 1999, Daewoo, then South Korea's second-largest concern with interests in about 100 countries, went bankrupt with debts of about $80 billion.
Shortly after the collapse of the company, its president, Kim Woo-jun, fled to France. Kim Woo-jun returned to Korea in June 2005 after six years abroad and was soon arrested. Kim was accused of defrauding US$43.4 billion, illegally borrowing US$10.3 billion, and smuggling US$3.2 billion out of the country (according to South Korea's Yonhap Press Agency).
November 15, 2007 South Korea Daewoo President Lee Taeyong and thirteen other citizens of that country were convicted, among other offenses, of involvement in illegal transactions with the Burmese oil and gas industry, as well as in the sale of weapons, weapons technology and equipment to the Burmese junta. The Daewoo crash was and still is considered controversial, due to the complex nature that concerns (chaebols) play in South Korean life. The collapse resulted in billions of US dollars in losses for South Korean banks and the government. In addition, the bankruptcy of the company was not only a financial but also a political crisis, and was a severe blow to a large part of the population.
Daewoo Electronics continues to be active despite the bankruptcy of the parent concern. Other branches and divisions became independent or ceased to exist in the "reorganization" carried out by the Korean government under Kim Dae-jung.
IN North America Daewoo Electronics products are now branded as "Trutech", based on an ODM agreement.
The Daewoo group (except electronics) was reorganized into three parts:
- JSC Daewoo International Corporation- trade and investment;
- JSC Daewoo Engineering & Construction- construction of energy facilities, oil and gas industry, infrastructure, etc.;
- JSC Daewoo Shipbuilding & Marine Engineering- shipbuilding.
Some parts of Daewoo are absorbed by other companies: General Motors bought out the passenger car division, the production was named " GM-DAT" (eng. General Motors- Daewoo Auto & Technology); Daewoo Commercial Vehicles acquired Tata Motors (India), the world's fifth largest manufacturer of medium and heavy trucks; the production of small arms and auto parts was bought by the company S&T Holdings and since 2006 known as S&T Daewoo.
In 2004, GM removed the Daewoo brand from the Australian and New Zealand markets, causing this trademark irreparable damage [ ] . Daewoo vehicles were announced to be sold under the Holden brand in these countries. From January 1, 2005, cars sold in Europe (including those manufactured in Ukraine) were also renamed (from Daewoo to
Brief information about the company:
Brand name: Daewoo (Daewoo Motor Co., Ltd.)
A country: South Korea (Headquarters - Seoul)
Specialization: production of passenger cars
Daewoo history began in the already relatively distant 1972 in Korea, when at the legislative level the right to legally engage in automobile production was secured for four local companies, which were: Kia, Asia Motors, Hyundai Motor and Shinjin. Some time later, Kia and Asia Motors merged into one company, and Shinjin was transformed into a joint venture between Daewoo and General Motors.
Having existed in the status of a joint venture ( joint venture) a few years, the company eventually acquired the name Daewoo Motor. By the beginning of 1996, Daewoo had built three large technical centers: in Worthing (Great Britain), near Munich (Germany) and in Pulyane (Korea). Ulrich Betz has been appointed Chief Technical Officer of the company's projects (he previously held a senior management position at BMW).
The cooperation of the young and dynamically developing Daewoo company with General Motors continued until 1993. And in 1995, Daewoo introduced two models for the German market: Nexia of a small class and Espero of a medium class.
Daewoo Nexia is nothing more than the latest upgrade Opel car Kadett E. License to manufacture this legendary car was acquired by the Koreans back in 1986. In the United States and Canada, the Nexia was sold under the name Pontiac Le Mans, and in the local market in Korea it became known as the Daewoo Racer.
The Russians first met Nexia in 1993. In March 1995, the model underwent another upgrade and was renamed Nexia (Cielo for Korea). After some time, the assembly of these cars was transferred to Daewoo branches in various countries: UzDaewoo - in Uzbekistan, Red Aksai - in Russia and Rodae - in Romania.
At the end of 1997, the company presents three new models of the concern at international motor shows - Lanos, Nubira and Leganza.
For development and production Lanos car it took two and a half years, and this project cost no less than 420 million dollars. Lanos was the first own development of Daewoo. As conceived by the developers, the new Lanos was supposed to replace its predecessor - Model Nexia. At the same time, the novelty borrowed a suspension from the old woman and steering.
Daewoo's next own development is the Nubira model, which was developed by the company's branch located in England. Designed by I.D.E.A. The birth of the Nubira model (translated from Korean as "to travel the world") began in 1993, and the work was completed 32 months later. For the first time, the novelty was presented to the public at the end of 1994. This is a golf-class car with a transverse engine and front-wheel drive, which replaced the Espero. In Russia, the version is called "Orion".
An automobile company cannot be considered established if there is not a single representative of the business class in the line of its models. The Leganza model was the company's first attempt to break into the level prestigious car. Leganza, according to the laws of the genre, has become the most comfortable and most "fancy" Daewoo car. It was decided to take the body from the Opel Senator as the basis for the design of this model. Italian specialists from Italdesign worked on its refinement.
Daewoo Matiz is a bright urban mini-car with a transverse engine and front-wheel drive. For the first time this model was presented to the audience and potential buyers at an exhibition in Geneva in 1998. And already in October 2000, at the Paris Motor Show, one could get acquainted with updated version Daewoo Matiz.
The Asian financial crisis of 1998 ended for Daewoo company great difficulties. Despite this, the South Korean government decided not to nationalize the company. The largest auto giants of the world fought for the right to acquire it.
In September 2002, the South Korean company Daewoo changed its name to GM Daewoo Auto & Technology Co., officially coming under the jurisdiction of General Motors.
South Korean firm Daewoo Motor Co.,Ltd. , which is located in Seoul, specializes in the production of automobiles
Since 1972, four companies have had the right to manufacture cars in Korea, namely: Hyundai Motor, Shinjin, Kia, Asia Motors. Subsequently, the two firms Kia and Asia Motors merged. And a company like Shinjin formed a joint venture between Daewoo and General Motors. A few years later, a company called Daewoo Motors was formed.
Daewoo Company began to develop dynamically and until 1993 closely cooperated with General Motors. Since 1993, the company has released the Prince sedan, as well as a more comfortable Brougham variant. Brougham was released on the basis of the Opel Senator, which by that time had already been discontinued.
By early 1996, the company Daewoo Three rather large technical centers were built in the city of Worthing - the state of Great Britain, then not far from the city of Munich (Germany) and in Korea - the city of Pulyan. Daewoo's technical project manager is Ulrich Betz, who at one time was a high-ranking manager of such a large company as BMW.
In the German market, in 1995, such models appeared Daewoo, How Nexia is a small class Espero- middle class.
Represents the latest generation of Opel Kadett E, which began to be produced under license in 1986 in Korea. Called Pontiac Le Mans, car
exported to Canada and the USA, and in the local market it became known to everyone as the Daewoo Racer.
In 1993, the Russians first got acquainted with this model. In March 1995, they carried out another modernization of the car, and the model was renamed Nexia (for Korea - Cielo). Then the assembly was transferred to Daewoo branches in different countries: Krasny Aksai - in Russia, UzDaewoo - in Uzbekistan, Rodae - in Romania.
Nexia is comfortable, attractive and modern car which is equipped electronic system fuel injection, efficient heating and air conditioning system. Has a 5-speed gearbox. The gearbox is manufactured to the highest standards. Which gives her the right to guarantee smooth and precise switching. Hydraulic drive clutch is light and has a high degree reliability. The car is easy to drive, as the suspension of the car provides a comfortable ride. Improved bumpers and door braces provide additional security. With minimal damage to emergency situations, bumpers include a system of stepped impact energy absorption. The car is comfortable thanks to the following elements: central administration door locks and fuel tank, power windows, stereo system with speakers, hydrocorrector headlights.
Body Nexia made in the classic tradition of four-door sedans. The engine capacity is 1.5 liters, thereby ensuring high performance. Also, the engine is equipped with a multi-port fuel injection system, due to which it ensures smooth engine operation, fuel economy and low level exhaust toxicity. The engine is provided with an electronic ignition system, which makes it possible to start on the first try in almost any conditions.
In the cabin of the car, conditions are created for comfortable accommodation of 5 people and luggage.
Comfortable seating upholstered in fabric. Based on the above, it can be concluded that Nexia is economy, reliability, safety, quality and comfort.
The model belongs to the "mini" class. The car was created on the basis of Suzuki Alto - a Japanese small car. The model began to be produced since 1988 in South Korea, and since 1996 in Uzbekistan. The latest models were released in 1994. The body of the car is tiny, but the interior is very comfortable. The cabin can easily accommodate four people. Thanks to its compact size, it feels great on the streets of our big cities. The car has a three-cylinder engine, which allows such a tiny car to keep up with other cars downstream. The suspension of the car can be called quite comfortable. The simple design and tiny size make the cost of the model affordable. If we compare the model with the domestic Oka, then this model looks very attractive. It is quite reliable and meets a decent set of consumer qualities.
At the end of 1992 - at the beginning of 1993, it was first introduced, which was designed by Bertone.
The car is designed on the basis of units of the Opel-Ascona model. made of inexpensive materials, but this does not prevent the car from looking quite modern and solid. Although this model is already more than ten years old, and in our time it looks good. There is enough space for the driver and passengers inside the cabin, both in the front row and in the back row of seats. Daewoo Espero has a good ride, which allows the car not to slow down on the potholes and pits of our roads. With this quality, the car is somewhat reminiscent of American models. It moves well along the trajectory, although excessive rolls can interfere in corners. Engines are reliable, as they are time-tested. But, as for the running gear, it is not too strong, and from time to time it requires some investment. But parts are available and inexpensive. - comfortable car with an affordable price.
By the end of 1997, the company presented the last three models Daewoo, namely: Nubira,lanos, And Leganza.
It took 30 months to develop the car, and in 1997 the presentation of the model took place. It was the first Daewoo model that the company designed independently. was supposed to replace the model, taking only steering and suspension from it.
The Italian studio Ital Design, which designs car bodies, has designed a body for the model, making the car look pretty nice. The interior of the model is made of inexpensive materials, but the designers tried to make it so that getting into the car, the atmosphere in the cabin would cause you very pleasant emotions. The car has three engines, the volumes of which are 1.3; 1.5; 1.6. from the category of small cars, but this does not interfere with having a decent ride. The model has good sound insulation. Only at a speed of more than 120 km / h can you hear some kind of noise. Running short-lived. But if you remember the small cost, then this small drawback can be forgiven for her. Therefore, if you want to buy a fresh car, and even not at an expensive price, then this is great choice which you could do.
The company developed the model independently. Development began in 1993. And after 32 months in Worthing, the design was developed. At the end of 1994, the first layout was presented, but was later changed. And in 1997 the model was released. The car belongs to the golf class with a transverse engine. The model has changed. The model is produced in four types of bodies: a sedan, three - and five-door hatchbacks and a five-door station wagon. The body of the model is assembled quite qualitatively, has anti-corrosion coating. The interior is made of inexpensive materials, the details fit well, and the design is pleasant. Even after several years of operation of the car, the interior panels will not rattle. The engines of the model provide decent dynamics. The suspension is also built so that the passengers of the car should not hear unnecessary vibrations. If you take care of the car, then it can serve you for a long time, and you will be satisfied. The model is designed for people who want to buy a modern, reliable, and most importantly fresh car at an inexpensive price.
This is a model with a transverse engine and front-wheel drive.
If we compare models and, then Matiz is almost 10 cm larger in both height and width Tico. The car is endowed with a modern and elegant design. The body of the model has a slightly smooth shape - a large rounded Windshield, which smoothly passes into the continuation of the hood, extended wheel arches, oval headlights. The large windshield provides the car with excellent visibility, and the convex lines emphasize the good aerodynamic properties of the model.
There are several configuration options, including air conditioning, power steering and radio. And the last version of the model is equipped with full power accessories and a CD-changer for 6 discs.
The car body is designed in such a way as to ensure the safety of both the driver and passengers. The roof is additionally reinforced. Power beams, which are built into the doors, reduce the risk of body deformation, help prevent jamming, and thus provide passengers with protection in collisions. With high technology designed plastic fuel tank, which prevents fuel leakage, as well as its subsequent ignition if the car rolled over.
The interior of the car can easily accommodate four people, although if you look at it from the outside, you can’t tell. The car is equipped with a three-cylinder 0.8 SOHC MPI engine, which runs on gasoline, with a system of distributed fuel injection. The fuel injection system provides high power, as well as fuel economy, which is very important in our time. And despite all the parameters of the engine, matiz it drives very briskly around the city, and the ease of operation and the small size of the car allow you to feel favorably in the stream of cars. The model is very easy to park.
safe. The modern car security system allows you to maintain the driver's confidence in any, and even difficult traffic situations. The model is equipped with the following items active safety: brakes, four-channel ABS, equipped with powerful 7-inch vacuum boosters, two airbags.
The car has an exhaust gas recirculation system. The system allows to reduce fuel losses, and also contributes to less emission of harmful gas. An EMS system is also installed, controlled by an on-board computer.
The car is characterized by an excellent level of comfort and affordable price. Daewoo Matiz - fast and economical, which is ideal for the city. Reasonable price and excellent specifications make the car a favorite among a large number of drivers.
In 1998 (after the financial crisis in Asia), Daewoo faced great difficulties. Fall 2002 Daewoo officially moved to General Motors. The company changed its name to GM Daewoo Auto & Technology Co.
If you are interested in the history of Daewoo, then I can assume that information on the repair of cars of this brand will not be indifferent to you? Right? If the answer is yes, I invite you to familiarize yourself with the material of the section Do-it-yourself Daewoo car repair, where the owners Daewoo cars Lanos, Daewoo Nexia, Daewoo Matiz, Daewoo Sens, Daewoo Nubira will be able to find the necessary information for themselves, which in the future will help them in self repair your car.
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An article about the most interesting and exciting moments in the history of Daewoo - the ups and downs of the brand. At the end of the article - a video about Daewoo cars.
The content of the article:
The history of the huge Daewoo concern is an exciting mixture of scandals, frauds, bankruptcies, risky adventures, and at the same time resilience and unsinkability. The company, which was the pride of its country, subsequently drove South Korea into billions of dollars of debt, and thousands of people lost their jobs. However, despite the theft, litigation, arrests of the entire leadership of Daewoo, whether it's good or bad, it has existed for 40 years.
Businessman or scammer
Kim Woo Chong was born into an extremely poor family, and since childhood he had to earn a living by selling newspapers. Then the hard-working young man founded a textile trading company, which he pompously called the "Big Universe" - Daewoo.
A few years later, the company's sales amounted to 25 billion dollars a year, and Kim became famous for his organizational skills. Not without the help of the government, he bought up bankrupt enterprises and quickly made them highly profitable. In addition to his native country, Kim invested in the automotive industry of Uzbekistan, India, Poland, creating joint ventures there.
By the end of the 90s, the company gave the state 13% of exports, or almost 18 billion dollars, as well as the work of 250 thousand employees.
Trouble crept up in 1997, when the miracle entrepreneur deafeningly went bankrupt and was forced to hide from law enforcement agencies. It turned out that his entire company with many years of impeccable reputation, one of the four largest in all of South Korea, was mired in multi-billion dollar debt. The management regularly falsified accounting documents, showing continuous growth of assets.
Kim Woo Chong opted to increase debt instead of cutting production, which particularly shocked the state, which provided cheap loans. large companies with a carefully thought-out development plan. As a result, Daewoo was on the verge of complete destruction, the employees of the automobile plant were laid off by the thousands. Then the state had to apply to the IMF for a loan of 58 billion dollars in order to save all the sinking organizations that were under the tutelage of Daewoo.
"Son of the Regiment"
most famous and popular model Daewoo's automaker is the compact Matiz. Despite the abundance of jokes about him that he is an imported version of the Zaporozhets, that his trunk is 27 Galina Blanca cubes, the history of this car is interesting and extraordinary.
If its predecessor Tico was almost completely copied from the Japanese Suzuki Alto, then this baby was created from scratch for 29 months, spending $ 180 million. Moreover, they were created in the full sense of the word by the whole world: it owes its design to the Italian maestro Fabrizio Giurjaro, American, Japanese, European engineers and designers took part in the technical part. The development of the running system fell to the British technical center, and the engine came directly from Germany.
A nice car with three configuration options attracted the attention of visitors to the Frankfurt Motor Show. The millions invested were not in vain: first, Matiz conquers the domestic, then the Italian market, from there it reaches England in the right-hand drive version, from where it spreads throughout Europe.
The release of babies per year reaches 400 thousand copies, and at an average price of 10-12 thousand dollars, it is not difficult to calculate for what period the first own development of Daewoo paid for itself completely.
Daewoo, SsangYong and Mercedes
In the era of the dominance of the Korean car market with typical sedans, the engineering SsangYong company decided to seriously occupy the niche of SUVs. Traditionally, having started their journey by copying military Willis, gradually over 10 years of development, engineers gained the skills to develop their own models.
At this point, Daimler Benz bought a few percent of SsangYong shares in a very timely manner. Thus, newly minted samples, in addition to great design, affordable price and high level comfort additionally purchased power units from the best German manufacturer.
Daimler Benz willingly shared his experience and helped in the creation of such models as Korando and Musso. The affairs of the Koreans went uphill, and they swung at business-class cars, for which the Mercedes platform was also taken. The car turned out to be interesting, not inferior in design to Lexus, only much cheaper. However, just before the start of sales, the unexpected happened.
Although SsangYong's business was flourishing, sales were going uphill, suddenly a compatriot Daewoo acquired 52% of the company's shares. Following its aggressive policy, the "invader" immediately began stamping its logo on the produced cars. In addition, there was a certain agreement between partners SsangYong and Daimler Benz - the new Chairman model, which is a direct competitor to German products, should not be exported to Daimler markets. But Daewoo was not interested in other people's obligations, royalties, and even more so mutual politeness in terms of exports. Daimler was seriously offended, and Daewoo, as if nothing had happened, doubled its production volume, although the conflicting car promised to be renamed.
Daewoo's own crisis also saved him from litigation with the German auto giant, which, while still owning a 3% stake in SsangYong, was not going to lose the invested funds, and in addition its reputation. At the beginning of the 2000s, Daewoo sold a controlling stake, took up its problems in earnest, and a promising Korean automaker came under the reliable wing of an Indian machine builder.
Daewoo, General Motors and Chevrolet
From the very beginnings of Daewoo, the shadow of a strategic partner, General Motors, loomed behind her. The Koreans received a profitable alliance together with the purchased automaker Shinjin Motors. The first joint product was the Opel Kadett E, which was generously licensed by the American partners to the Koreans.
A typical sedan for that time was produced in an Italian factory and had a choice of petrol or diesel engine. In different countries, the model was known under different “names”: in Australia and America - Pontiac LeMans, in Brazil it was listed as Chevrolet Kadett, in England - as Vauxhall Astra, and in South Africa - as Opel Monza.
After a Korean conglomerate filed for bankruptcy, creditors and rivals turned on it as the government refused to further fund or nationalize the venture. Both Fiat and Ford wanted to own the brand, and General Motors would not mind becoming a full owner.
The Italians at that time were experiencing their own financial difficulties, Ford considered the acquisition unprofitable, so the creditors got 33% of the shares - the same GM bought the lion's share at a bargain price, another 15% went to Suzuki. However, the company was too compromised by its debts and scandals, so its unreliable reputation also negatively affected current owners and interest in the brand.
Since 2004, the automaker called Daewoo Motors has ceased to exist, turning into Chevrolet, and existing models have acquired new names: Chevrolet Lanos instead of the eponymous Korean car, Aveo instead of Daewoo Kalos and
Lacetti instead of Nibura.
Daewoo and Ravon
A lot of troubles and troubles were brought by Korean unfortunate businessmen to all their numerous divisions and subsidiaries. I fell under the influence of the general hype and the Uzbek car assembly plant, which was called Uz-Daewoo. The enterprise was also jointly owned by Koreans and Americans and manufactured minibuses and cars, including Chevrolet Spark, Chevrolet Matiz, Daewoo Gentra.
The new enterprise, which was named Ravon in 2015, continued close cooperation with American engineers, which had a positive effect on Russian motorists. At that time, GM officially stopped the production of its products at Russian factories, which led to a significant decline in our car market. But the products of the Uzbek plant have been well known to car owners for more than 20 years, and therefore are invariably in demand. Now they could get the same models in their original form, only with the Ravon nameplate on the front of the car.
Surprisingly, after a string of corporate bankruptcies, paying out $30 billion to bail out all subsidiaries of Daewoo's creditors, who returned just $7.7 billion in stock sales, the company still exists. The rapidly growing supercorporation, which was provided with comprehensive assistance by the government, which, like an octopus, spread its tentacles around the world, survived after 40 years of struggle and a deafening fall.
Now there are several main activities of Daewoo: steel and chemical production, construction, Appliances and electrical equipment. Again rose from the ashes and Daewoo Motors - however, now it sells its products exclusively in Korea and Vietnam.
Video about Daewoo cars:
The "Great Universe" of the Korean Automotive Industry - Daewoo Brand
Korea is the home of manybig car companies. It was in the capital of this country that the headquarters of the famous automobile manufacturer Daewoo Motor Co. was located. Ltd.
Kim Woo Chun - business genius
In 1936, the future founder of the Daewoo brand, Kim Wu Chun, was born in a family of Korean intellectuals. Although Kim's father worked as a teacher at the university, the boy's life was not calm and well-fed. At that time, Korea was one of the poorest countries in the world, and therefore, in order to help his family, at a very young age he had to earn money by street selling newspapers. During the period of the division of Korea into two parts, Kim finished his studies in Seoul at the prestigious Yonsei University, where he received an economic education.
When bombs were no longer heard on the Korean streets, people became more and more worried about whether the Korean economy would be able to catch up with the Japanese economy in development? The young graduate Kim gave an affirmative answer to this question, as well as his other fellow citizens, because he firmly believed that his people were superior to the Japanese. In 1960, Kim Woo Chun got a job at the Council for Economic Development, open under the government, but still the young man was more interested in practice than theory, and after studying the intricacies of the Korean bureaucracy for a year, he transferred to the private company Hansung Industrial. The young man devoted himself entirely to work, and already in 1965, at the age of 29, he was appointed to the position of director of Hansung Industrial. And then the idea is born in Kim's head to start building his own industrial empire.
Daewoo Deep Diversification
After 2 years, Wu Chun leaves Hansung and registers the Daewoo weaving company. The name chosen by Kim (translated from Korean as "Great Universe") corresponded to the ambitions of the young man. And although the weaving company established in 1967 did not have any looms, it did have five employees and $10,000 in start-up capital. In order to receive his first order, the businessman demonstrated the fabrics he purchased in Hong Kong to various entrepreneurs. And this adventure bore fruit in Singapore, where the charismatic Korean received an order for his company for $ 200,000. With the advance received, Kim returns to Korea and purchases the necessary weaving equipment. A month later, his weaving company produces fabrics of the required quality. During the first year of its activity, Daewoo managed to sell its products for 580 thousand dollars and open the first foreign offices in Sydney and Frankfurt. The company itself operated a system of paternalistic labor relations. To further strengthen the family atmosphere, Kim constantly visited the shops, where he talked with employees and handed out chocolates to them. The owner of the company did not disdain to spend the night in his office after an almost 24-hour working day.
After these successes, the name of Kim's textile business was heard at a government meeting in the most laudatory context. Thus, the prerequisites appeared for Kim to fall into the number of "close" businessmen, whom General Park Chung-hee chose according to his personal qualities, and Daewoo to turn into a solid chaebol (financial and industrial group). The government gave state-owned factories and banks to the “close” oligarchs practically for free, and also provided almost unlimited soft loans. In return for their privileged position, the chaebols had to show exponential growth in exports.
Kim understood that weaving mills alone were not enough to build an industrial empire, and therefore he began to persistently search for a way into other industries. In 1976, the turning point in Daewoo's activities was the donation of a state-owned machine tool plant by the government to the company. This production had no chance of "recovery", because for all 37 years of its existence it has never made a profit. To correct the situation, Kim "lived" at the factory in the truest sense of the word. To do this, he even put trestle beds in his more than modest office. The businessman also radically revised the production strategy, sent staff for retraining and reprofiling. All these measures have yielded results. A year later, the plant for the first time in its existence made a profit. After the machine tool plant, Kim owned a shipyard, and then a car assembly plant. Wu Chun managed to put even the most hopeless enterprises on their feet.
By 1972, Daewoo was already a group of companies engaged in, among other things, the production of electrical appliances, weapons, electrical appliances and much more. But with the deep diversification of Daewoo, Kim's main ambition has always been the auto industry. The history of the company as a car manufacturer dates back to 1972, when the Korean government decided to entrust the creation of domestic cars to four manufacturers: Kia, Hyundai Motor, Asia Motors and Shinjin. After a while, Kia and Asia Motors merged, and Shinjin, in turn, became Daewoo, founded in 1972 by GM and Suzuki. In the future, the young automaker chooses a new name, Daewoo Motor, and the image of a sea shell as a logo. As the company's management believed, this badge most of all corresponded to the name "Daewoo".
Model rangeDaewoo
The first cars under the new Daewoo brand saw the light in 1977. "First-born" was Maepsy, which could be said to be a clone of Opel Rekord. The latter was produced from 1957 to 1986.
At the initial stage, and in subsequent years, the automaker is making every effort to become a worthy rival to companies such as Hyundai and in particular its division Kia. In the first half of the 80s, Daewoo gradually increased its momentum. In 1982, the annual production of the company is 15 thousand copies of cars, and five years later this figure is 150 thousand cars.
Until 1993, Daewoo worked closely with the American automaker General Motors, and in the mid-90s, the South Korean company entered the German car market with models such as the Nexia and Espero. ModelNexia is licensedbased on the Opel Kadett E produced in Korea since 1986. Nexia is known to Americans as Pontiac Le Mans, and to Koreans as Daewoo Racer. In Russia, this model appeared only in 1993. After its release, originally created as a comfortable car, with an affordable price for a wide range of buyers, Nexia was produced for several years without any changes. The model was available from various modifications bodies (5- and 3-door hatchback, as well as a sedan) and different versions equipment (GL and GLE). The car was driven by an 8-valve 75-horsepower 1.5-liter engine “borrowed” from Kadett E. In addition, Nexia could be equipped with a 16-valve engine that develops a power of 90 "horses". After restyling, the assembly of Nexia was established in Uzbekistan, Russia and Romania.
Since 1988, the Tico all-wheel drive hatchback, which belonged to the “mini” category, has been rolling off the Daewoo assembly line. The car was based on the Suzuki Alto model. 8 years after this release this car the Uzbek plant began to work.
In 1993, the company presented the Prince sedan and the more comfortable Brougham model, developed on the basis of the Opel Senator, which was no longer produced at that time. In the same year, Daewoo produces a modelEspero. The basis of the novelty was the chassisOpel Ascona. The range of car engines included located transversely units with a volume of 1.5 liters, 1.8 liters and 2 liters, developing a capacity of 90, 95 and 105 "horses", respectively. This inexpensive sedan ceased production in 1997.
Three years after that, Daewoo opens 3 large technical centers in the UK, Korea and Germany. The dynamics in terms of production continues to persist in the 90s. Kim was simply obsessed with the idea of turning Daewoo into a leader in the global automotive industry. To strengthen the position of his company, Kim began building factories in underdeveloped, but at the same time promising markets, where at that time there was rather weak competition. As a result, the number of Daewoo cars produced annually by 1999 began to equal 729 thousand units. Kim planned that in the new millennium the company would produce approximately 2 million cars annually and the brand would have every opportunity to fulfill its plans if politics had not intervened.
First prerequisites Links to the events of the late 90s occurred back in 1995, when the head of Daewoo was under investigation in connection with a corruption scandal, and although the court acquitted him, his problems with the law did not end there. At a time when the management of other chaebols, such as Hyunday and Samsung, urgently reduced their debts and tried to increase profits, Wu Chun firmly believed that Korea would always support his "brainchild".
In 1997, the product lineDaewoo replenished three models at once: Lanos, Nubira and Leganza. These cars have become the most popular over the entire period of the brand's existence. To create these cars, the company had to take a large number of loans.
Exactly Lanos was the first independent development of the Korean auto company. Initially, the C-class model was intended to replace Nexia in the model range, but due to the fact that the improvements made were insignificant, Lanos simply acquired its “additional” audience. At the same time, Lanos can be safely called people's car, because it combined quality and an acceptable price for a wide range of buyers. The model was available in sedan, 3- and 5-door hatchback body styles. To equip the car, a whole line of engines was offered from a 1.3-liter engine to a 1.6-liter unit with a capacity of 75-106 “horses”. The release of this model in South Korea ended in 2004, but cars continued to be produced in Ukraine and Vietnam.
Model Nubira has developed a division of the company in England. The car belonging to the golf class was equipped with a front-wheel drive system and located transversely engine. The model was quite inexpensive, but at the same time it was distinguished by decent workmanship. The novelty was available in body modifications similar to Lanos. Since 2002, the model has changed the chassis, and its further release continued under the name Lacetti.
Leganza is the brand's first business class car. A large number of specialists from leading auto-building companies (GM, Lotus, Ricardo, etc.) worked on the development of this model. In the history of the company, the novelty has become the most comfortable car with the most extensive equipment. Leganza was equipped with a modified 2-liter 136-horsepower unit. Depending on the equipment, a 5-speed manual transmission or a 4-speed automatic transmission was installed on the car. Some time after the release, a 1.8-liter 95-horsepower unit became available for the model. The main advantage of Leganza was a harmonious exterior, decent driving performance, rich equipment for its class and at the same time affordable price. The model was discontinued in 2003.
From a small textile company with five employees, Daewoo had grown by 1997 into a major automaker employing 320,000 people in many countries around the world. The diligence of the founder of Daewoo allowed the company, three decades later, to take the second place in Korea in size. Unfortunately, in the shortest time after that, the company died.
The collapse of the "Great Universe"
In 1998, at the Geneva Motor Show, Daewoo presents to the public a miniature, comfortable and very maneuverable Matiz car. The novelty, created on the basis of Tico, immediately became popular with many Europeans who prefer to move around the city in small, economical cars. The first generation of the model was equipped with an economical 0.8-liter engine and a 5-speed manual transmission. Restyled version models have already added a little in size, and the exterior has become more modern.
In the same period, the country was covered by the Asian financial crisis, which led to a rapid increase in the brand's debts. Kim persistently tried to convince the government to help, but the government pursued its goal of nationalizing the chaebols, and therefore officials in return for their help demanded the sale of the company's foreign assets. For the founder of the company, this meant saying goodbye to his dreams of Daewoo's leadership in the global auto industry, and therefore Kim decisively refused this offer. The automaker made a number of attempts to get out of this situation on its own, but a massive “attack” of creditors with demands to urgently pay off all debts nevertheless led Daewoo to bankruptcy. And in 1999, the government of the country took control of the company, and the founder of the brand was declared a malicious financial criminal. Several automotive companies began to fight for the right to buy the South Korean brand. While the auction lasted for a year, the company continued to increase production.
In 2000, the Leganza was replaced by the Magnus (known in Europe as the Chevrolet Elanda) in the company's model range. Compared to its predecessor, the model has significantly increased in size. The Magnus, like the Leganza, had a practical interior, excellent driving performance and a wide range of powertrains. A year after that, a 5-seater minivan debuted at the Geneva Motor Show Rezzo .
In 2000, by decision of the Korean government, the most "tasty" part of Daewoo Motor for a "paltry" price of 250 million (for comparison, other buyers offered to purchase this share for 4-6 billion dollars) is sold to the company's main competitor - the GM concern, which, after jurisdiction, renames the firm to GM Daewoo & Technology Co. The best part for General Motors is that the agreement to buy Daewoo did not include the repayment of Daewoo Motor's debts. Instead of repaying the $17 billion debt, the group gave away about $1 billion worth of Daewoo Auto & Technology Co shares to creditors. When will the transformation of these valuable papers in real money, GM did not specify.
Kim Wu Chun, who left the country at that time, upon learning about this news, decided never to return to Korea. But, intending to finally "trample" the former oligarchs, the government put Kim, who continued to lead a public life already outside the country, on the wanted list. In 2005 the former Daewoo owner returned to Korea, where he was immediately arrested and sentenced to 10 years in prison. The sick and infirm Kim, released after a while under an amnesty, could already sadly observe how only scattered companies that were not dangerous and uninteresting to "overseas partners" remained from his previously prosperous "Universe".
Daewoo cars were distinguished by a reasonable ratio of cost and workmanship, were quite comfortable for their class, quite economical and easy to drive. All this allowed Daewoo to take its rightful place on the world automotive Olympus. But the company still expected failure. In the sad story of Daewoo that ended sadly, politics played an important role, and therefore it is difficult to talk about business mistakes. But the example of this company is indicative in the sense that in order to be successful in this market, one should always adequately evaluate real situation cases, whatever they may be.
