SN, REESE ES

AUTOMOTION

WHILE VEHICLE
are slumping in North
America,: Europe and
Japan, sales and production
are booming in emerging
countries such as Mexico,
Thailand, China, Taiwan,
and South Korea.

Developing countries are
capitalizing on a combination of
low wages, borrowed technology,
free market economies, and iarge,
untapped domestic markets to
produce comparable vehicies at a
much lower cost. Industrialized
countries — including Canada —
are finding that the cost of wages,
health care, anc retirement
benefits are making their cars
comparatively expensive to pro-
duce.

This has broad implications for
the economies of developed na-

sales

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tions in the next 10 years. Produc-
tion in the United States and
Canada is likely to begin moving
to Mexico, assuming quality levels
and labor stability can be achiev-
ed,

In Europe, production is shif-
ting to former ecast-bloc countries
ike Czechoslovakia, Poland and
the former East Germany. In
Asia, production is shifting away
from Japan to Thailand,
Malaysia, China, Taiwan, and
South Korea.

Vehicles manufactured in de-
veloping countries are usually
based on borrowed foreign tech-
nology and produced under licence
from a major foreign manufac-
turer.

These v2hicles vary from
reskinned cars with borrowed

OTIVE
roduction booming in developing countries

powertrains, to imported knock-
down kits.

In general, these vehicles can be
manufactured significantly
cheaper than those produced in
developed nations though quality
levels are not yet up to par.

Of ali the emerging automobile
manufactuving countries, South
Korea has been one of the most
successful automotive producers
and exporters, and is in a position
to replace Japan as the next man-
ufacturer of high-quality low-
priced automobiles and trucks.

Total South Korean 1992 vehi-
cle sales and exports were
1,733,000. The Korea
Automobile Manufacturer’s
Association predicts that home-
market sales will grow 14% to
1.45 million this year, and exports

will grow 17.5% to 520,000 vehi-
cles as Korean automakers
penetrate new markets in Europe
and Latin America.

For Canadian consumers,
Hyundai is the most visible South
Korean import, but there are
others: Kia Motors manufacture
the Ford Festiva and Daewoo
produces the Pontiac LeMans.

la fact, South Korea has six
domestic vehicle manufacturers
who export vehicles all over the
world. Kia Motors Corp. — which
is 10% owned by Ford Motor Co.
and 8% owned by Mazda — ex-
ported 103,000 cars last year,
many as knock-down kits to
southeast Asia and South
America.

Kia produces the Festiva, Spor-
tage sport-utility, Besta commer-

cial van, and is about to introduce
a replacement for the Festiva. Kia
has plans to expand inte the Unit-
ed States market next year with a
new compact sedan and sport-
utility.

Daewoo Motor Co. recently
sk=i its 50% ownership by Gen-
eral Motors and as a result suf-
fered a 14% drop in its GM-
related exports. But it is making
inroads in Asia and South
America with the Le Mans, Prince
and the handsome new Espero
compact sedan.

Next year, Daewoo will produce
the Acura Legend in Korea under
licence from Honda for domestic
sales only. A subsidiary of
Daewoo, Daewoo Shipbuilding,
also builds a Suzuki-licensed

See South Korea page 34

THE CHOICE IS YOURS, our overheads are kept low because we don’t
have acres of real estate and millions of dollars in inventory to finance.
We operate on a personalized one on one basis.

Custom Lease has brought a new philosophy to the automobile industry. Unlike traditional dealers who represent
only one make and a limited number of purchase or lease options, Custom Lease represents all makes and models

and can custom tailor the finances to suit your individual requirements. Further, Custom Lease maintains
remarkably jow overheads. Low overheads means lower profit margins and that means YOU PAY LESS.

Low overhead does not mean reduced customer service. On the contrary, Custom Lease’s success has been largely
based on exemplary service. After all, service is an attitude, an attitude that says we'll bend over backwards to

satisfy our customers.

The next time you're in the market for a new or pre-owned vehicle,

is a nicer experience.

RON ABRAMSKI
SALES MANAGER

call the professionals at Custom Lease , it really

JLEASE MANAGER.

“FRIDAY 8ain - + 6pm: fe
SATURDAY: 10am =4pm