GM Daewoo Unveils Hybrid SUV to Enter Alternative Car Market October 2004

GM Daewoo Auto & Technology Co., Korea's No.3 carmaker, yesterday unveiled its hybrid sport utility vehicle and fuel cell car, declaring its challenge to larger rival Hyundai Motor Co. for the nation's alternative fuel car market.

"Although we are a latecomer in this sector, customers will soon recognize our top-notch technologies. Backed by GM's enormous technical resources, we will surely lead the new market," said Vice President of Product Engineering Yu Ki-joon during tour of the company's plant in Incheon.

The affiliate of the Detroit-based General Motors Corp. introduced a hybrid version of its new sports utility vehicle, tentatively named S3X, and the parent company's latest fuel-cell car, Hy-Wire. The hybrid SUV is to be in the domestic market by 2007.

Hybrid cars run on battery power at low speeds and switch to traditional internal-combustion at higher speeds. GM Daewoo claims its hybrid engine features about 35 percent greater fuel efficiency than gasoline-powered cars.

According to GM Daewoo's research officials, such hybrid vehicles will be $2,000 to $3,000 more expensive than gasoline-powered models.'

Hybrid projects are gaining attention in Korea amid mounting concerns over the rising oil prices. The government plans to offer a tax break on home-grown hybrid cars beginning in 2008. But so far, Hyundai Motor and GM Daewoo, are the only Korean automakers with hybrids in their product pipelines.

This month, Hyundai Motor, the nation's largest carmaker, delivered its hybrid version of Click mini cars to the Ministry of Environment for testing.

Hyundai officials have scheduled a 2007 market launch, but say the timing could be earlier.

Hyundai developed all the needed technologies for its hybrid. In contrast, GM Daewoo will mainly use its parent company's engineering resources to launch the alternative-fuel system vehicle. For instance, S3X's hybrid engine was developed by GM engineers in the United States and modified by Daewoo staff in Korea.

Another difference between the two local hybrid developers is the product focus. While Hyundai plans to introduce hybrid versions of minicar and compacts, GM Daewoo will mainly concentrate on SUVs and bigger sedans for the new segment.

"Our basic policy is covering the biggest fuel consuming cars first. Otherwise, consumers will not easily feel the fuel economy that hybrids offer," said Steven Lee Clarke, GM Daewoo's managing director. GM's hybrid lineup in North America also centers on pickup trucks and SUVs.

GM Daewoo said before the launch of the hybrid version, it will introduce the diesel engine type of the new SUV by 2006. This will finally add the highly popular segment to the carmaker's line-up.

Experts say the mid-size S3X will further heat up the nation's SUV market which has traditionally been dominated by Hyundai Motor and its affiliate Kia Motors Corp.

Hybrids were initially designed to fill the gap between gasoline-powered cars and hydrogen fuel-cell vehicles.

"GM is the leader in the development of fuel cell vehicles. We are stretching to deliver fuel cell power models to our customers worldwide by 2010," said Steve Carlisle, GM Asia-Pacific vice president of planning.

General Motors, the largest carmaker in the world, has spent billions of dollars so far to lead the fuel cell technology. The company's fuel cell Zafira minivan broke the world's longest drive record earlier this year after it finished 9,696 kilometers in 38 days. Its similar minivan models are being used in Japan and the United States as a delivery vehicle.

Hyundai is also working to develop hydrogen fuel-cell vehicles. In April, the carmaker joined the U.S. government's project to test its hydrogen-fueled sport utility vehicles. Hyundai officials expect fuel-cell cars to be commercialized around 2010.

GM Daewoo was launched in 2002 after GM bought the main assets of bankrupt Daewoo Motor Co. The carmaker currently has about 10 percent of the local auto market. It passed the second anniversary of its formation on Sunday and the Tech Tour event was organized as a part of its anniversary celebration

SOURCE: Korea Herald

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