Shinjin Motors

The Shinjin Industrial Company started as a parts producer in 1954, branching into the automotive field in 1958 as a rebuilder for the U.S. Army, with actual assembly commencing in 1962.^[1]

The Government of South Korea enacted the "Automotive Industry Promotion Law" in 1962.^[1][2] Under this legislation, the importation of assembled automobiles was outlawed, subsidies were made available to assemblers who were also afforded tariff exemption on the importation of parts.^[3] Responsibility for deciding which firms would be authorized to undertake automobile manufacturing was held by the Minister of Trade and Industry, who at the time opted to appoint just one company for each product segment to maximize economies of scale.^[3][4] The minister initially favored the Sammi Corporation for passenger automobiles.^[2] Preference was shifted to Saenara Motors after the latter made alleged political contributions to the party recently established by the military government.^[2] Consequently, Saenara signed an agreement with Nissan^[3] who provided the company with technical assistance and a US$35 million loan to facilitate the construction of a factory in Bupyeong-gu, Incheon.^[5] Saenara Motors began importing duty-free Datsun Bluebird (310) semi-knock-down kits from Nissan in November 1962 at a cost of ₩130,000 per unit.^[6][7] The assembled cars were then retailed at ₩250,000—thus producing large profit margins that allowed Saenara to provide political donations to the government.^[6] Due to a shortage in foreign currency, the junta later forbid the firm from importing further kits, leading to the cessation of manufacture in May 1963,^[8] having built only 2,773 cars.^[8] Saenara collapsed that July, thus resulting in its ownership transfer under joint management by the ministry and Hanil Bank.^[6]

1963–1966 Shinjin Shinsungho, based on the Datsun Bluebird (310) and formerly sold by Saenara Motors (1962–1963)

In November 1963, Shinjin released the Shinsungho (alternatively spelled Sinsungho)^[9]—an exact copy of the Saenara Bluebird except they were fitted with Jeep engines.^[8][10] Shinsungho models continued until 1966,^[1] by which time just 322 Shinsungho cars had been produced.^[10][11]

The ministry unveiled a new automotive plan in August 1964 that envisaged a parts and components sector that revolved around a sole automobile assembler.^[6] The government reassigned Shinjin as the authorized automobile producer in May 1964 via a new Shinjin Automobile Company division, with the manufacturer taking control of the Saenara plant in November 1965.^{[1][2][12][13]} The selection of the Shinjin bid was again attributed to sizeable contribution to the political party in power.^[2][14] However, according to Odaka (1983), the government's selection appears to have made provision for the technological capability of Shinjin.^[1]

Initially, Shinjin formed a technical venture with Mitsubishi Motors, assembling 100 units of the 1500 cc Mitsubishi Colt model with imported and semi-knock-down parts. This was denounced by other firms as it acted contrary to the government’s objective of localizing the parts industry, and as such Shinjin terminated the deal a year later.^[2][15][16]

A new foreign venture was then established with Toyota in January 1966 and approved by the ministry on 2 February 1966.^[17] This resulted in models such as the Toyota Corona from May 1966 being produced and achieving 21 percent local parts content.^[1][6] Corona manufacture allowed the company to increase its 1965 asset base of ₩300 million to ₩3.2 billion in 1968. The profitability experienced by Shinjin became a source of contention with other industrial groups emerging as lobbyists to convince the government to grant further licensing, thus ending the monopoly.^[6] In December 1966, the government decided to terminate the monopoly held by Shinjin by investigating other firms to commence passenger car production.^[14] In 1967, Hyundai was approved, with Asia Motors following suit a year later, and Kia Motors in 1971.^[2][18] The cessation of this monopoly, in conjunction with technological relationships with foreign corporations, substantially uplifted the total automotive industry output in South Korea to 33,000 units in 1969,^[19] up from 7,400 in 1966.^[14] However, as production numbers started to decline, the government implemented new measures to promote growth.^[19] This included permission for the transfer of Toyota's shares in Shinjin to General Motors in 1972.^[19] This ownership transfer was necessitated due to Toyota's wish to move into the Chinese market^[2]—the People's Republic of China prohibited companies operating in South Korea and Taiwan from operating in mainland China as well.^[2] The new partnership sought with General Motors, resulted in the 50-50 General Motors Korea (GMK) joint venture.^[20] Due to financial difficulties, Shinjin sold its stake of GMK in November 1976 to the Korea Development Bank (KBD), and GMK was retitled Saehan Motors.^[1][21] The KBD later sold this equity stake onto the Daewoo Group in 1978.^[21]

In April 1974, a separate 50-50 alliance was set up between Shinjin and the American Motor Company (AMC), known as Shinjin Jeep Motors.^[22] The following month, Shinjin entered into a technical partnership contract with AMC, and in October 1974, production of hard and softtop Jeeps commenced.^[23] In March 1979 AMC relinquished its stake in the firm as it became a domestic corporation and its name was subsequently changed to Shinjin Motors.^[24] The corporation was renamed once again in February 1981 to Keohwa,^[24] which was taken over by Dong-A Motors in December 1984.^[23] This acquisition resulted in the "Dong-A" nameplate being applied to all South Korean manufactured Jeeps from 1985.^[25] When the SsangYong Group chaebol purchased Dong-A in September 1986, the firm was subsequently renamed "SsangYong Motor Company" in March 1988. At the same time, all "Jeeps" produced by the former Keohwa under the "Dong-A" trademark were re-branded "SsangYong".^[25]

Discover more about History related topics

Government of South Korea

Government of South Korea

The Government of South Korea is the national government of the Republic of Korea, created by the Constitution of South Korea as the executive, legislative and judicial authority of the republic. The president acts as the head of state and is the highest figure of executive authority in the country, followed by the prime minister and government ministers in decreasing order.

Economies of scale

Economies of scale

In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time. A decrease in cost per unit of output enables an increase in scale. At the basis of economies of scale, there may be technical, statistical, organizational or related factors to the degree of market control. This is just a partial description of the concept.

Campaign finance

Campaign finance

Campaign finance, also known as election finance or political donations, refers to the funds raised to promote candidates, political parties, or policy initiatives and referendums. Political parties, charitable organizations, and political action committees are vehicles used for fundraising for political purposes. "Political finance" is also popular terminology, and is used internationally for its comprehensiveness. Political donations to funds received by political parties from private sources for general administrative purposes.

Military dictatorship

Military dictatorship

A military dictatorship is a type of dictatorship in which power is held by one or more military officers acting on behalf of the military. Military dictatorships are led by either a single military dictator, known as a strongman, or by a council of military officers known as a military junta. They are most often formed by military coups or the empowerment of the military through a popular uprising in times of domestic unrest or instability. The military nominally seeks power to restore order or fight corruption, but the personal motivations of military officers may include greater funding for the military or a decrease in civilian control of the military.

Knock-down kit

Knock-down kit

A knock-down kit is a collection of parts required to assemble a product. The parts are typically manufactured in one country or region, then exported to another country or region for final assembly.

South Korean won

South Korean won

The Korean Republic won, unofficially the South Korean won is the official currency of South Korea. A single won is divided into 100 jeon, the monetary subunit. The jeon is no longer used for everyday transactions, and it appears only in foreign exchange rates. The currency is issued by the Bank of Korea, based in the capital city of Seoul.

Mitsubishi Motors

Mitsubishi Motors

Mitsubishi Motors Corporation is a Japanese multinational automobile manufacturer headquartered in Minato, Tokyo, Japan. In 2011, Mitsubishi Motors was the sixth-largest Japanese automaker and the 19th-largest worldwide by production. Since October 2016, Mitsubishi has been one-third (34%) owned by Nissan, and included in the Renault–Nissan–Mitsubishi Alliance.

Mitsubishi Colt

Mitsubishi Colt

The Mitsubishi Colt is a nameplate from Mitsubishi Motors that has been applied to a number of automobiles since 1962. It was first introduced with a series of kei and subcompact cars in the 1960s, and then for the export version of the subcompact Mirage between 1978 and 2002. Chrysler, Mitsubishi's longtime partner, also used the name when applying its long-running practice of rebadging Mitsubishi vehicles as the Dodge and Plymouth Colt captive imports for the North American market between 1970 and 1994.

Toyota

Toyota

Toyota Motor Corporation is a Japanese multinational automotive manufacturer headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on August 28, 1937. Toyota is one of the largest automobile manufacturers in the world, producing about 10 million vehicles per year.

Hyundai Motor Company

Hyundai Motor Company

Hyundai Motor Company, often abbreviated to Hyundai Motors and commonly known as Hyundai, is a South Korean multinational automotive manufacturer headquartered in Seoul, South Korea, and founded in 1967. Currently, the company owns 33.88 percent of Kia Corporation, and also fully owns two marques including its luxury cars subsidiary, Genesis Motor, and an electric vehicle sub-brand, Ioniq. Those three brands altogether comprise the Hyundai Motor Group.

Asia Motors

Asia Motors

Asia Motors Industries, traded as Asia Motors, was a South Korean car manufacturer established in 1965 and closed in 1999. From 1976 onwards, it was a subsidiary of Kia Motors.

General Motors

General Motors

The General Motors Company (GM) is an American multinational automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and was the largest in the world for 77 years before losing the top spot to Toyota in 2008.

Automobiles

• Shinjin Corona — the first model of the brand and launched in May 1966. The Corona is a mid-size sedan with a 1,490 cc four-cylinder, two-barrel carburetor engine producing 82 PS (60 kW) and 122 N⋅m (12.4 kg⋅m). The suspension was independent coil suspension with hydraulic shock absorbers with front and rear drum brakes. It was the most popular car of its time in South Korea, selling a total of 44,248 units. The model went through a model change in 1970 with optional 1600 cc engine producing 90 PS (66 kW). The Corona was discontinued in 1972. Very few Shinjin Coronas remain today.
• Shinjin Publica — introduced in 1967, powered by the air cooled 790 cc two-cylinder, horizontally-opposed engine good for 30 kW (40 hp). Shinjin Motors believed that there would be a private automobile boom in South Korea and many people would look forward to purchasing a small and economical car. The Publica is known as the "Red Car"or "Little Car" by the public and became very famous. However, sales were not successful with only 2,005 cars sold until 1971. The model offered three body options: two-door, wagon, and pickup versions. Only three cars survive today, with one designated in 2008 as registered heritage property of South Korea.
• Shinjin Crown — in 1967 the manufacturer established this model as its first luxury car, using a 1,453 cc inline-four engine producing 45 kW (61 hp) and a maximum speed of 141 km/h (88 mph). The model was mainly purchased by large industry owners, government agencies, and the highway patrol police. Between 1969 and 1970 the model went through three facelifts. The 1969 Crown Deluxe received a minor face lift, new trim and a new 1,988 cc engine producing 78 kW (105 hp) and with a top speed of 171 km/h (106 mph). In 1970, Shinjin released the Shinjin New Crown in a second attempt to enter this luxury segment and manage to be very successful selling 3,839 cars, double that of Hyundai's Ford 20M. However, after Toyota left Shinjin Motor Company, they were not able to sell more vehicles and was bought by General Motors.

• 

  신진 코로나 1500
  Shinjin Corona 1500
  1966–1972

• 

  신진 퍼블리카
  Shinjin Publica
  1967–1971

• 

  신진 크라운
  Shinjin Crown
  1967–1968

• 

  신진 뉴 크라운
  Shinjin New Crown
  1971–1972

Buses

• Microbus — The body of the microbus was built and assembled by Shinjin Motor Company, however, because they were unable to manufacture the powertrain and chassis, they were taken from Dodge M37. Since the bus is very first South Korean built vehicle, many bus companies purchased them, thus making the Microbus the first successful bus built by Shinjin.
• FB100LK — After the success of the Microbus, Shinjin turned to building large buses for public transit in the city of Seoul which were dominated by Hadonghan Motor Company. Instead of using power source from military vehicles, Shinjin issued the Isuzu Motors BR20 bus in both front- and rear-engined configurations. The FB100LK soon became one of the best sellers for the company.
• DB102LC — Shinjin also built buses using Toyota's powertrain and chassis. The bus is the longer version of the FB100LK, but used for the same purpose. The bus is based on Toyota DB100K, although front design was changed and many components were built by Shinjin themselves. Only the front-engine setup was available. After Toyota ceased its relations with Shinjin, this bus was discontinued.
• RC420TP — After founding of the Gyeongbu Expressway, Shinjin license built the Hino RC300P for the new express bus market. It was mounted with Hino DK20-T engine and had air suspension. However, it was built only for one year giving a total of just 67 units. The bus is recognized in South Korea as one of the first express buses, although the first express bus was Hyundai's Ford R226 Turbo.

Trucks

• Land Cruiser Pickup — The Land Cruiser Pickup was first four-wheel drive pickup and mainly purchased by construction workers and private owners. The pickup was very successful and replaced old US Army trucks sold to civilians after war. The pickup was sold until 1972. Only one example survives today owned by private owner.
• Ace — Shinjin sold a light truck that was a licensed Toyota ToyoAce. It was popular choice for many transport companies and remained very popular until its demise in 1972.
• Cargo Truck — Shinjin licensed built Toyota Truck in 1967 to sell it in truck market. It is nicknamed "Toyota Bonnet Truck" because the engine is mounted in front of the cab with the truck bonnet stretched out. It was also sold as a ladder truck for fire department. It was discontinued in 1970.
• Dump Truck — Shinjin license built a Hino truck in 1968 to sell to construction companies and since there wasn't a name for this truck, people nicknamed it the "Hino Bonnet Truck". The truck was not a sales success and was discontinued in 1971.
• 6.5t Cargo Truck — The truck was licensed built, based on Hino TC cab-over truck. The truck was first cab-over truck in South Korea and became popular. The truck was targeted for transportation companies that mainly uses the expressway. The truck was discontinued in 1972.

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Drum brake

Drum brake

A drum brake is a brake that uses friction caused by a set of shoes or pads that press outward against a rotating cylinder-shaped part called a brake drum.

Ford P7

Ford P7

The Ford P7 is a range of large family saloons/sedans produced by Ford Germany between autumn 1967 and December 1971. The P7 was marketed as the Ford 17M, Ford 20M and Ford 26M.

Toyota Corona

Toyota Corona

The Toyota Corona is an automobile manufactured by the Japanese automaker Toyota across eleven generations between 1957 and 2001. On launch, the Corona was Toyota's next to highest product in their range, just below the Crown. The Corona was marketed in the JDM at Toyota's Toyopet Store dealership channels, and the Corona was one of Toyota's first models exported to other global markets, followed by the smaller Toyota Corolla.

Toyota Publica

Toyota Publica

The Toyota Publica is a small car manufactured by the Japanese automaker Toyota from 1961 until 1978. Conceived as a family car to fulfill the requirements of the Japanese Government's "national car concept", it was the smallest Toyota car during that period and was superseded in that role by the Toyota Starlet, which itself started out as a version of the Publica. It was available as a 2-door vehicle only, but in a selection of body styles, ranging from the base sedan through a station wagon, convertible, coupé and even a coupe utility (pickup), which outlived the other models by a decade, and spawned other models, such as the Toyota Sports 800 and the Toyota MiniAce.

Toyota Crown

Toyota Crown

The Toyota Crown is an automobile which has been produced by Toyota in Japan since 1955. It is primarily a line of mid-size luxury cars that is marketed as an upmarket offering in the Toyota lineup.

Shinjin Micro Bus

Shinjin Micro Bus

Shinjin H-SJ Micro Bus was introduced in 1962 as part of growing company at Shinjin Industrial Company.

Dodge M37

Dodge M37

The Dodge M37 3⁄4-ton 4x4 truck (G741) was Dodge's follow-up to their successful WC Series from World War II. Introduced in 1951, it was used extensively by the United States armed forces during the Korean war. In the 1970s, they were replaced by the Commercial Off The Shelf (COTS) based 1+1⁄4-ton trucks Kaiser M715, and Dodge's M880/M890 series (1970s).

Seoul

Seoul

Seoul, officially known as the Seoul Special City, is the capital and largest metropolis of South Korea. According to the 2020 census, Seoul has a population of 9.9 million people, and forms the heart of the Seoul Capital Area with the surrounding Incheon metropolis and Gyeonggi province. Considered to be a global city and rated as an Alpha – City by Globalization and World Cities Research Network (GaWC), Seoul was the world's fourth largest metropolitan economy in 2014, following Tokyo, New York City and Los Angeles.

Gyeongbu Expressway

Gyeongbu Expressway

The Gyeongbu Expressway is the second oldest and most heavily travelled expressway in South Korea, connecting Seoul to Suwon, Daejeon, Gumi, Daegu, Gyeongju, Ulsan and Busan. It has the route number 1, signifying its role as South Korea's most important expressway. The entire length from Seoul to Busan is 416 kilometers (258 mi) and the posted speed limit is 100 kilometers per hour (62 mph), enforced primarily by speed cameras.

Hino Blue Ribbon

Hino Blue Ribbon

The Hino Blue Ribbon (kana:日野・ブルーリボン) is a heavy-duty single-decker bus produced by Hino Motors through the J-Bus joint-venture. The range is primarily available as city bus and tourist coach. It is built by J-Bus as either a complete bus or a bus chassis.

Toyota Land Cruiser (J40)

Toyota Land Cruiser (J40)

The Toyota Land Cruiser (J40), is a series of Land Cruisers made by Toyota from 1960 until 2001. Traditional body on frame, most 40 series Land Cruisers were built as 2-door models with slightly larger dimensions than the similar Jeep CJ.

Four-wheel drive

Four-wheel drive

Four-wheel drive, also called 4×4 or 4WD, refers to a two-axled vehicle drivetrain capable of providing torque to all of its wheels simultaneously. It may be full-time or on-demand, and is typically linked via a transfer case providing an additional output drive shaft and, in many instances, additional gear ranges.

Shinjin changed its name to GMK (General Motors Korea) after its 50-50 joint venture with GM resulting in ₩18 billion in capital. From now on, vehicle assembly of GM vehicles occurred, with engines from the German subsidiary of GM, Opel. These GM models were popular in South Korea and continued manufactured with to Saehan Motors and Daewoo Motors.

Automobiles

• Chevrolet 1700 — introduced in South Korea in August 1972 based on the Holden Torana (LJ) from Australia.^[26] The car had 1,698 cc CHI engine producing 59 kW (79 hp) and 127 N⋅m (13.0 kg⋅m). Compared to its rivals, the 1700 had more power and the car was reliable. However, it also had a low ride height and high fuel consumption compared to rivals. This was problematic as the car was built during the 1973 oil crisis. This also effected the taxi industry which consumed 60 percent of Chevrolet 1700 sales. GMK soon fitted a fuel saving system on the Chevrolet 1700, but the sales remained low and the model was discontinued in 1975 after 8,105 units were sold. Only one Chevrolet 1700 survives today, a former taxi. There was also a wagon version of Chevrolet 1700 called Caravan.
• Record 1900 — introduced in 1973 and based on the Opel Rekord D. The car was the flagship luxury sedan for GMK, fitted with a 1,897 cc CHI engine producing 76 kW (102 hp) and 159 N⋅m (16.2 kg⋅m). In 1975, GMK issued minor trim changes for the Record 1900 and the name changed to Record Royal. The car had no exterior changes, but had subtle interior changes. The model continued to Saehan Motor and Daewoo Motor.
• GMK Camina — the successor of the Chevrolet 1700 based on Holden Torana and introduced in March 1976.^[26] The car shared the same chassis with the Chevrolet 1700 but had a downsized 1,495 cc engine producing 49 kW (66 hp) and 110 N⋅m (11.2 kg⋅m). GMK also attempted to make car more luxurious adding console box, new door trims and adjustable bucket seats. However, the smaller engine was underpowered and couldn't balance out the car's weight very well. The Camina was discontinued in January 1978 with only 922 cars sold.

• 

  시보레 1700
  Chevrolet 1700
  1972–1978

• 

  GM코리아 레코드 1900
  GM Korea Rekord
  1972–1978

• 

  GM Korea Rekord Royale
  1975–1978

Trucks

• Chevrolet 6.5t Cargo — was the first Cargo truck introduced by GMK, licensed version of Isuzu TDX50E cabover truck. The truck was powered by Isuzu V8 engine. It was discontinued in 1975.
• Chevrolet 11t Cargo — a cargo truck licensed version of Isuzu SRZ truck and used the 12,023 cc Isuzu V8 engine producing 180 kW (240 hp). The truck was later sold with the Saehan badge and the MAN D0846HM engine. It was later sold as a Daewoo, before being replaced with the introduction of Daewoo D2848 Cargo Truck.
• Chevrolet 10.5t Dump — licensed version of Isuzu TDX bonnet truck. The truck also used the same engine as the Isuzu TDX truck which produced 180 kW (240 hp). The truck continued to be built by both Saehan and Daewoo Motors using the MAN D0846HM engine. The truck was discontinued after introduction of Daewoo D2848 Dump Truck which is based on Isuzu Super Power.
• GMC Tractor — a 34t tractor truck that is export version of the GMC 9500 Tractor Truck. The truck was equipped with the Detroit Diesel 9,299 cc 8V71 engine producing 218 kW (293 hp).

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Opel

Opel

Opel Automobile GmbH, usually shortened to Opel, is a German automobile manufacturer which has been a subsidiary of Stellantis since 16 January 2021. It was owned by the American automaker General Motors from 1929 until 2017 and the PSA Group, a predecessor of Stellantis, from 2017 until 2021. Some Opel vehicles were badge-engineered in Australia under the Holden brand until 2020 and in North America and China under the Buick, Saturn, and Cadillac brands.

Saehan Motors

Saehan Motors

The Saehan Motor Company was a South Korean automobile manufacturer founded in 1976, which was born on the collaboration of Shinjin Industrial Company and General Motors to introduce their products on the South Korean market. Saehan was born on the former "General Motors Korea", which encountered difficulties when the South Korean market collapsed, following the first round of oil rises in 1973. This joint-venture, 50-50 between GM and Shinjin, consisted on a car assembly plant in Bupyong, a truck assembly plant in Pusan and a foundry at Incheon. In November 1976, Shinjin Motors faced financial problems and sold its 50% stake in Saehan to the Korea Development Bank (KDB). In 1978, the Daewoo Group acquired the equity stake and management rights from KDB. The company was renamed Daewoo Motor Co. in January 1983.

Daewoo Motors

Daewoo Motors

Daewoo Motors was a South Korean automotive company established in 1937 as "National Motors". The company changed its name several times until 1982 when it became "Daewoo Motors" following its acquisition by the Daewoo Group. After running into financial difficulties, it sold most of its assets in 2002 to General Motors at $1.2 billion, becoming a subsidiary of the American company. In 2011, the name "Daewoo" was definitively removed with the company being renamed GM Korea and the Daewoo brand replaced by the Chevrolet marque.

1973 oil crisis

1973 oil crisis

The 1973 oil crisis or first oil crisis began in October 1973 when the members of the Organization of Arab Petroleum Exporting Countries (OAPEC), led by King Faisal of Saudi Arabia, proclaimed an oil embargo. The embargo was targeted at nations that had supported Israel during the Yom Kippur War. The initial nations targeted were Canada, Japan, the Netherlands, the United Kingdom and the United States, though the embargo also later extended to Portugal, Rhodesia and South Africa. By the end of the embargo in March 1974, the price of oil had risen nearly 300%, from US$3 per barrel ($19/m3) to nearly $12 per barrel ($75/m3) globally; US prices were significantly higher. The embargo caused an oil crisis, or "shock", with many short- and long-term effects on global politics and the global economy. It was later called the "first oil shock", followed by the 1979 oil crisis, termed the "second oil shock".

Opel Rekord

Opel Rekord

The Opel Rekord is a large family car which was built in eight generations by the German car manufacturer Opel. Between 1953 and 1986, approximately ten million were sold.

Holden Torana

Holden Torana

The Holden Torana is a mid-sized car that was manufactured by Holden from 1967 to 1980. The name apparently comes from an word meaning "to fly" in an unconfirmed Aboriginal Australian language. The original HB series Torana was released in 1967 and was a four-cylinder compact vehicle closely based on the British Vauxhall Viva HB series of 1966 - 1970.