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Avia? That'll be the Daewoo

21st April 2005, Page 18
21st April 2005
Page 18
Page 18, 21st April 2005 — Avia? That'll be the Daewoo
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Daewoo has restructured following financial problems and has a new UK distribution network and a new name. Colin Bameft reports.

Exclusive

FOLLOWING FINANCIAL difficulties with its UK importers and at the manufacturing level, the Daewoo truck organisation has had a major shake-up.

A new American backer is in place, the UK has a new factoryowned distribution network and the whole operation has been rebranded— in fact this will be the last time you hear the Daewoo name.

In common with GM's rebranding of the totally unconnected car marque to Chevrolet, the Czech truck maker decided that the troubled Korean name was more liabil ity than asset, so from now on the trucks will be known as Avia.

In case you didn't know, Avia has a fine engineering pedigree. It dates back to 1919, when it was set up to build aircraft — a task it carried out until 1960, The firm began building trucks at the end of the Second War.

The new backer is Odien Capital Partners, anAmerican venture capi tal provider with a reputation for turning around ailing Czech manufacturing comparues. It now owns 98% of the Czech business Not surprisingly, Odien plans to cut Avia's costs and increase income as quickly as possible. The savings will be achieved by consolidating production into a smaller section of its vast, underused site on the outskirts of Prague and by outsourcing more component supply. The extra revenue is intended to come mainly from extending its product line-up.

As well as the LDV connection (see panel), it is developing a 12tonne GVW model based on a Turkish BMC chassis with an Avia cab and Cummins/ZF driveline. The existing 9-tonne model will be upgraded to 10 tonnes GM.

In the UK a factory-owned distribution company, Avia Trucks UK. was set up at the beginning of the year to cover Great Britain and the Channel Islands. CM understands that all but one of the previous dealers have signed up with the new organisation. Ireland is covered by a separate importer.

CM will take an in-depth look at Avia on 5 May, including driving impressions on the new 12-tonner.

Tags

Organisations: Daewoo
People: Colin Bameft
Locations: Prague