GM Korea - History

History

GM Korea's roots go back to the remnants of the Korean War and Shinjin Motors, which launched its business by rebuilding scrapped US military vehicles. Shinjin Motor was first established as National Motor in 1937 in Bupyeong-gu, Incheon, South Korea. After changing its name to Saenara Motor in 1962, Saenara Motor was bought by Shinjin Industrial in 1965, which changed its name to Shinjin Motor after establishing a partnership with Toyota. After Toyota's withdrawal in 1972, Shinjin Motor changed its name to GM Korea (GMK) in 1972 with General Motors purchasing a 50% stake in the company from Toyota in 1972; however GMK was renamed again in 1976 to Saehan Motors. Korean Development Bank (KDB), the company's creditor, took over management in 1976 as the company found itself unable to cope with competition from Hyundai and Kia. After the Daewoo Group gained control in 1982, the name was changed once more to Daewoo Motor. In the early 1990s the company started to expand heavily throughout the world. Until 1996 all Daewoo cars were based on GM-designed models. After the Asian financial crisis reached South Korea in 1997, Daewoo took over the troubled SUV manufacturer SsangYong in 1998, but ran into financial trouble and was forced to sell the company off in 2001 to GM affiliate SAIC.