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Daewoo unveils Millennium Matiz, to launch super luxury car in Nov

Daewoo Motor India Limited today unveiled a limited edition version of its 796cc small car -- Millennium Matiz -- and announced plans to introduce a super luxury car -- Nubira-2 -- in the Indian market by November this year.

To be priced in the Rs 900,000 to Rs 1.1 million bracket, the car would mark the company's foray into the top-end segment of the passenger car market, DMIL new managing director and CEO Young-Chang Kim told mediapersons in Surajpur near Delhi where DMIL has a plant.

In addition, the company would be introducing a stripped down version of the Nexia in March, Kim added. The car would sport the existing 1600cc engine but would be positioned as a standard variant.

Besides, a CNG version of the Cielo would also be introduced shortly.

Regarding the super luxury car, Kim said, ''We have several options and would most likely introduce the Nubira-2 by November. A final decision on the final model and roll-out schedule would be taken by March.'' The final price of the model is also yet to be fixed.

The company, he said, is also exploring the multi-utility vehicle and sports utility vehicle segments for finalising a model for India.

Meanwhile, the company today unveiled the Millennium Matiz on the SP, SE and SD variants. The ex-showroom price of the car will be Rs 17,000-18,000 higher than the existing price. In addition, the company has also hiked prices of the existing models of the Matiz by an average Rs 6,000 as against the anticipated Rs 25,000.

The company would be producing only 1,100 units of the Millennium Matiz on the SP, SE and SD versions, to be delivered on first-come, first-serve basis.

The special purpose version would be available in three colours -- orange copper, cyprus green and twinkle beige. The added features include refurbished interiors, chrome-treated head lamp, body coloured door handles and bumpers, rear spoiler and a special millennium sticker.

DMIL, Kim said, has embarked on a restructuring exercise that hinges on cost reductions to boost bottomlines. However, there are no job cuts on the anvil.

Matiz to help Daewoo India to ride out of the red next year

DMIL expects its 796cc small car Matiz to drive the company into a break-even stage in the next fiscal, Kim said.

The company had last year recorded a net loss of Rs 400 million and expects to reel in the red this fiscal as well. ''But next year, we will surely move out of the red,'' Kim said.

It also expects to record a turnover of Rs 31 billion in the next fiscal, up from the expected Rs 13 billion this fiscal.

''With Matiz sales increasing by the day, we are confident of improving our bottomlines,'' he added.

The company expects to produce 4,500 units of Matiz this month and 5,300 units in March and finally ramp it up to 7,200 units by July. ''Since we are not planning any exports for July, the entire production of July would be targetted at the domestic market alone."

The company has already effected a Rs 6,000 hike in prices of Matiz on all the four models, following increase in production costs.

The company, it may be recalled, had earlier announced that prices are likely to go up in the range of Rs 25,000. ''That was in anticipation of a 12 per cent sales tax slab. But since that slab did not come through, the price rise has been nominal,'' he added.

Country-wide sales for Daewoo in January was 4,207 units, of which Matiz accounted for 4,054 units. On the exports front, Daewoo has so far despatched 895 units of Matiz to various countries, including 500 units to Italy and has in hand a confirmed export order for 2,500 cars from Europe.

The company has targetted to sell 80,000 units of Matiz next year and 6,000 units of Cielo, Nexia and Nubira. In addition, 4,000 passenger car units would be exported during the year, Kim said.

Indian arm to figure in 'sell-list' of Daewoo Corp

DMIL will figure in the list of Daewoo overseas subsidiaries to be sold off to either of the two US auto giants -- General Motors Corporation and Ford Motor Company.

''Though negotiations are being held at the top level in Korea and we are not aware of the final decisions, I personally feel that Daewoo Motors India would figure in the acquisition talks for Daewoo's overseas operations,'' DMIL new managing director Young-Chang Kim said.

A General Motors' team had last year visited the Surajpur facility of DMIL for valuation and ''they were satisfied with our facilities and quality levels''.

''At present, both GM and Ford are in the race for acquiring Daewoo. I would not be able to say anything else beyond this for the present,'' Kim added.

South Korea had yesterday formally invited the world's two biggest auto makers -- General Motors and Ford Motor -- to bid for the crippled Daewoo Motor Company. The corporate restructuring committee, which is overseeing attempts to sell bankrupt Daewoo Motor, has sent out invitation letters to ''less than ten'' firms, including the two US giants and South Korea's Hyundai Motor Company.

''Invitations have been sent to less than ten firms including GM, Ford and Hyundai, Kim Jong-Do, a senior manager in charge of the auction proceedings, had said.

The move means GM and Ford are now officially locked in a race to acquire the bankrupt South Korean firm as part of the battle to boost their Asian presence and dominate the global market.

Reports said a total of six car-makers, five of them foreign, had been invited to bid in the limited international auction. Earlier, news reports had said the other three firms expected to be allowed to bid for Daewoo, which is saddled with around $ 16 billion in debt, were DaimlerChrysler, Fiat and Volkswagen.

Meanwhile, GM has stated that it wants to take over the sales and financing arms of Daewoo Motor as well as the main body of the company.

GM has told Daewoo creditors that it wants to acquire most of the Daewoo Group's auto business, Managing Director Han Young-Chul of the Corporation Restructuring Commitee of the Daewoo Group has said.

This means that GM wants to buy Daewoo Motors and its overseas operations, its jeep-making Ssangyong Motors, Daewoo Capital and Daewoo Motor Sales as a package, Han said.

UNI

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