Why Daewoo aftermarket companies colapse

[PrecisionBoost]

As the subject sugests I'm going to tell you why Daewoo aftermarket companies keep starting up and then colapsing within 2 years.

Most if not all of the companies so far have required the use of bank credit in order to purchase products.

Many of them made the mistake of increasing the number of products they offer when sales turned out to be slow.

Given they are using credit, the longer it takes to sell a product the less money they make.

In the case of certain companies, they were technically selling at a loss even though they had marked up the product 20%

Small business credit can run from 8% to 30% depending on the risk category and whether the company has assets to secure the credit.


Imagine this scenario..... you post that you would like to introduce "drilled and slotted performance rotors"

The feedback from the forum is good, so you start planning.

In order to get a machine shop to be willing to take on the job of machining the components you need to give them 50 pieces ( otherwise it's not worth it for the machine shop and they simply say no to your work or charge you a massive amount of money per rotor )

So you buy 50 rotors for roughly $3000 ( say your cost is $60 each for good quality rotors )

Then the machine shop charges another $30 each for the machining so now you've put out another $1500

So now you've put out $4500 for the rotors and you've allready been paying interest on them from the day you purchased the rotors.

Given machine shops are usually busy, it might take 3 weeks to get the rotors back.

So now the inexperienced business owner looks at the cost and says "well they cost me $90 per rotor" without taking into account the cost of credit.

The owner marks up the product 20% thinking that is "fair" and sells them for $112.50 per rotor.

In the first month he might sell 10 pieces right away and is happy.

Then sales drop off dramatically and people start saying "EBAY Civic rotors are $60.... why are yours so expensive? "

The quick answer to that is that the guy doing the Civic rotors is using the cheapest piece of shit rotor he can find, having the machining done in batches of 500 by a "fly by night machine shop that could care less about quality" and then he only marks them up 5% so that he can sell them as quick as possible.

Many of these companies start up on EBAY, build a reasonable reputation then sell off a big batch of crap like this and shut down their EBAY account.

They don't care if 350 out of the 500 rotors crack, or if they only last a year before severe pitting.... they just want the money and get out as soon as they can to avoid returning peoples money

Getting back to the story..... now the Daewoo company has 40 drilled/slotted rotors sitting there and nobody is buying them.

Sure the company made good money on the first 10 pieces... but the company is still sitting there with $3375 worth of debt for those left over rotors.

If say your line of credit is 12% that means your loosing $33.75 a month ( $405 per year )

You initially made $22.50 per rotor on 10 rotors so you only made $225.00 profit.

That is to say that after about 7 months the interest on the rotors eats up all the profit you've made on the first 10 rotors.

At any point forward of this the company is loosing money.... plain and simple.

It doesn't matter if the company sells another 10 rotors in the next year.... they will still loose money.

Overall the daewoo performance market is not large enough to support a dedicated company.

The only way a company could survive is if they took on 3 or 4 different brands.

That way you get 50 rotors done, 10 of them Daewoo, 20 of them Hyundai, 20 of them Nissan and you sell all your rotors in the first month of production.

Then when you get enough demand again you do another production run.

[buddha102]

do u still know where can we find preformance stuff for woos?

[PrecisionBoost]

Yes of course.... I've said this many times.... the Daewoo's are based upon Opel/Vauxhall/Holden..... the 1.6L and 2.0L are extreemly common in the rest of the world.... about as popular as the Honda Civic in the USA.

GM makes a factory 1.6L turbo in the UK/Europe.... as in a direct bolt on for the Lanos/Aveo

GM makes four different factory 2.0L turbo engines.... all are direct bolt on for the Nubira/Leganza/Optra/Reno/Forenza

I don't understand why most americans have this thing about ordering parts from other countries.... it's no different than ordering from a different state in most cases.


The biggest problem is that most people have no money........ it's just that simple.... they see these ebay deals for civic crap and figure that is how much they should pay.

I'm 35 yrs old so I remember the world before Ebay.... it was common to pay $500 to $1000 just for a decent intercooler.... turbo kits were $5000 to $10,000

The price of those quality kits haven't come down.... it's just that your average joe sees this ebay crap for $2000 and figures that's "regular price"


For custom work like a 2.0L/1.6L engine mount conversion Garrett should have been charging like $500.00 a piece.

For custom work that would normally be considered "reasonable"

But again we come down to who is buying the stuff.

Most of you couldn't afford a $500.00 mount.... where as I'm sure there would be hundreds of Mitsubishi or Subaru guys that wouldn't blink at that price.

[PrecisionBoost]

Personally I don't want to piss around getting pricing for people unless they are serious.

I will help anyone who wants something to get it without charging a cent.

But please don't email me and say "where can I get a new performance cam for $50" because it simply does not exist.

I have posted links to suppliers several times.... I will dig it up and post it again.

[PrecisionBoost]

http://www.daewootech.com/forum/viewtop ... ms+intakes

[PrecisionBoost]

Here is some stuff I posted a while back on the 1.6L.... and some 2.0L



"Arrow Precision makes great rods.... http://www.arrowprecision.co.uk/details.php?id=66159

here is everything you need to build up a 1.6L..... decent pricing.... they don't have an english version.... but Altavista can translate from German to English

http://www.imotecgmbh.de/Suchwortverz_/ ... verz_.html

here is some other interesting stuff.... not sure if they get into the 1.6L much.... http://www.enem.se/filarkiv.asp

many have allready been here... http://www.sbdev.co.uk/Main.htm

More related to 2.0L.... http://www.dsop.net/products/index.php

Mostly 2.0L but they do have Sachs clutches for X16XE... http://www.v-tuning.com/flywheels.htm

I have way too many links to check out which ones sell specific X16XE parts.... so I will rattle off some sites and you guys can figure it out.

Vauxhall Astra, Corsa usually had the X16XE which is what your looking for.

http://www.courtenaysport.co.uk
http://www.regal-shop.co.uk
http://www.larkspeed.com/
http://www.dbilas-dynamic.de/dbilas_eng/index.htm
http://www.wallaceperformance.co.uk/
http://www.lmfvauxhall.com/prodCatalog/default.aspx
http://www.tuning.co.uk/vauxshop/
http://www.espdesign.co.uk/esp.storefro ... duct/61040

There are many more...... some of these are not overly usefull.... I have 4 computers.... so I will have to dig around.

oh...... yes.... USA parts...... http://www.mantapart.com/

Pick the 1.6/1.8/2.0 OHC Sunbird & LeMans.... most of the parts are for the 8V but things like clutches and flywheels fit.... so do crankshafts, pistons, connecting rods since these are all bottom end parts......

....Like I said.... there are lots more... but most of them are more orientated towards the 2.0L turbo engine... I would concentrate on Mantapart.... they seem to have a reasonably decent reputation with the Lemans, Sunbird, Cavalier, Grand Am crowd.

I doubt that Mantapart has any idea that the Lemans 1.6L and 2.0L is alive and well in a 16V version.... if one were to point that out and ask them to get you parts.... they might be inclined to have parts manufacturered or stock parts brought in from Europe UK......

.......Still looking around in my links.... just found one of interest.
http://www.risse-motorsport.de/shop_mot ... ndex.shtml
http://www.mantzel.de/
http://www.enem.se/
http://www.dsop.net/
http://www.v-tuning.com .....

.....Oh.... I forgot about these guys.... althought I've never talked to them (because I forgot about them ) it sounds like they bring in Opel parts from the UK/Europe
http://www.vinteq-opel-parts.com/ ......

[exist3nce]

Interesting read, when you explain it through the financial viewpoint. It does seem that you need to offer products for several brands of cars to be successful as there just is not enough demand in north america for daewoo/opel performance stuff.

[PrecisionBoost]

I've been involved with a real decent tuning shop ( which my friend owned ) and they specialized in SRT4's so 80% of the cars that went through the shop were turbocharged (50% SRT's and the rest were other makes... Honda, Nissan, Mazda........... )

People just get the wrong idea... there are lots of guys out there spreading lies about how they managed 400 hp from their 1.6L Civic and it only cost $2300

What these guys usually don't tell you is that they replace the engine a month later because it tore itself to pieces and threw a rod out the side of the soft aluminum block.


Take the GSi for example.... Tom and I did a very large portion of the work ourselves (mostly Tom) but in total I would say that the two of us have sunk at least $15K into that car.... $10K alone on the engine.

If someone had a shop do everything that we did the bill would easily be $25K to $30K by now.


Existance.......I don't know how much you've spent on your Optra but I have to think it's getting up there by now considering all the work done by your local tuner shop.



The only reason I bring the business perspective into this forum is because I'm probably the only medium/large business owner on here.... I'm sure there might be a few small guys here and there... but for the most part Daewoo owners in the USA and Canada tend to be young guys in school or just out of school.

In my case I was interested in Daewoo's by the link to the Opel drivetrain and the fact that there are 800 bhp 2.0L turbo cars running around in Europe and South America.

I especially became intersted in the C20GET which was a great little engine right out of the box.... easily makes 200hp 250lbft with minor additions to the factory engine (intercooler, adjustable fuel pressure regulator, walbro fuel pump and a spring added to the wastegate to push it closer to 13/14psi )


I'm not allways the most tactful person.... I do tend to simply say what I feel... which rubs people the wrong way... and in some cases really pisses off people..... but I'm out here to simply let people know the truth.... or should I say my opinion of the truth.

By posting this my hope is that people will simply understand a bit about why people have a hard time stocking anything in the North America for these cars.......... and that the pricing for performance parts in the rest of the world is significantly higher than it is in the USA.

We have a nice diverse group of people here.... from all over the world..... in some places parts are expensive but labor is cheap.... other places labor is expensive but parts are cheap.

Take Dominican Republic for example.... if you had all the parts on hand.... I bet you could have your engine completely rebuilt with performance parts for a few hundred dollars as opposed to $3000 to $10,000 here in Canada/USA.

But at the same time their dominican peso is worth way less than ours..... so to someone like Efrain a simple timing belt might cost him a good portion of his monthly salary.

That is to say it's all relative..... where wages are really low... tuning, rebuilding, modifying, fabricating are cheap........ but to them parts are extreemly expensive because they come from other countries.