Adieu Damas and Labo... Into the Backstage of History Within the First Quarter

Multiple Extensions Granted Following Small Business Owners and Self-Employed Appeals

[Asia Economy Reporter Yu Je-hoon] The light commercial vehicle models Damas and Labo from Korea GM, known as the "people's ride," are soon to disappear into the annals of history.

According to industry sources on the 12th, Korea GM plans to discontinue the Damas and Labo within the first quarter of this year. Released in 1991, the Damas and Labo have been produced since the Daewoo Motors era and are currently the only light commercial vehicle models in South Korea.

The Damas and Labo gained popularity among small business owners and self-employed individuals due to their unique practicality. Both models are affordably priced around 10 million KRW, while offering high economic efficiency with cargo capacities of 450 kg for the Damas and 550 kg for the Labo. Additionally, as compact cars, they benefited from exemptions on automobile acquisition and registration taxes, as well as discounts on tolls and parking fees. Thanks to these advantages, cumulative sales since their launch have reached approximately 370,000 units.

However, environmental and safety concerns, along with profitability issues, have repeatedly threatened the discontinuation of the Damas and Labo. In the early to mid-2000s, discontinuation was considered due to stricter government environmental standards, and in 2013, with the legal mandate of airbags and emission self-diagnostic devices, discontinuation was again reviewed due to profitability concerns. Korea GM also felt the burden of development costs.

Each time the possibility of discontinuation arose, the appeals of small business owners across various industries such as laundry, floriculture, and quick delivery services extended the models' lifespans. In 2013, small business groups appealed, stating, "If light commercial vehicles are no longer produced, small business owners will face great difficulties," and "It is the government's responsibility to ensure the continued supply of livelihood means long favored by small business owners." The government accepted these requests and deferred the application of regulations at that time.

However, with changing times, 1-ton trucks fueled by LPG have gained popularity, and recently, electric commercial vehicles have been emerging one after another, leading to the conclusion of the 30-year journey of the Damas and Labo.

Meanwhile, a final surge in purchases is continuing ahead of discontinuation. According to Korea GM, 441 units of the Damas and 503 units of the Labo were sold in January, representing increases of 94.3% and 130.7%, respectively, compared to the same month last year. This is attributed to last-minute demand following the announcement of production termination and ongoing promotional activities.