The Asian economic markets are often times immune to the ups and downs of their brethren in Europe and North America. During a recessionary period in the early 1990s, Asian companies were buying most of the available real estate in an over the top buying spree. And while the economy was booming here in the late 1990s there was a huge economic crisis that hit the area, and most specifically South Korea, with great impact.
Not everyone was doing well, though. South Korean automaker Daewoo got into such a precarious financial state that General Motors swooped in and bought out the ailing manufacturing company. Now GM sells Daewoo cars around the world badged as Chevy and Suzuki models. Did you really think that the Chevy Aveo wasn’t really a distant cousin of the woeful Daewoo Lanos?
But the economic recession of today is a far different beast. It is not only affecting us here in the United States but also the economies of Asia, Europe, Africa, and South America. It is truly a worldwide affair. The days of a worldwide economy are now upon us.
South Korean manufacturers are being hit just as hard as General Motors, Ford, and Chrysler. GM Daewoo has seen exports fall 29% when compared to last year. As a result, the company is shuttering its plants in South Korea during the month of December for various lengths of time to avoid building up excess inventory. Sound familiar?
Our view? It is definitely a wise move on the part of GM Daewoo to cut production to meet slowing demand. Even though demand for new vehicles has slipped as of late, the world will always need inexpensive and economically sound transportation.
And GM Daewoo manufactures many models that fit the bill exactly. Even though the Aveo isn’t our favorite Chevy model it sure is cheap to buy and run. And that is just the kind of car America needs right now.
via Detroit News