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SPECIAL
MESSAGES
Message from Chairman Baik
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am proud to introduce Daewoo, a Young An subsidiary.
Young An’s pioneering international network. Daewoo Bus will soon become the global epicenter for bus exports.
Daewoo Bus started in February 1955 as Shinjing Industry Co. along with a long history in the field of bus manufacturing. Daewoo Bus boasts unparalleled technology and tradition.
Daewoo Bus is faithful and constant in its products through its guarantee of unmatched quality from assembly to delivery. We thank you for your continuous support and encouragement of Daewoo Bus.
The world is becoming increasingly smaller and in order to excel in the fiercely competitive global environment, Daewoo Bus strives to become not only domestic, but the world’s best bus manufacturer on the basis of its strong technological foundation as well as
Thank you, Chairman, Baik, Sung Hak
Daewoo Bus is Reinvented
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accordance to the renowned Daewoo Bus quality that is reinforced in the Shanghai and Guilin factories.
n this first issue of our newsletter we wish all our clients, partners, and friends every success for the new year of 2014.
These models maintain not only the standard of design, quality, and efficiency—which have characterized Daewoo Bus in our countries—but also possess one of the most valuable elements for any businessman in the area of transportation: Service and Parts Support.
Daewoo Bus Costa Rica S.A. and America Daewoo Bus Head Office take on this new year with many challenges and great enthusiasm, projecting numerous positive results in the attainment of our goals as well as those of our customers and strategic partners. The latter years have brought major change in the world economy. Is it necessary to mention the influence that first world economies have had in the countries of Central America and the Caribbean. The United States remains a crucial player in the economic factor, but now there is a rising participant in the economic panorama that is gathering significant commercial strength: China. The surge of China as a commercial powerhouse has been a massive influence on Costa Rica, since we are a
recent partner, as well as the first (and only) to sign a Free Trade Agreement with this giant. With this outlook in mind, Daewoo Bus joins this period of great change and innovation with power by putting special emphasis on renewing and increasing our range of products and services whilst considering the needs of our ever innovative and demanding public and collective transport areas. In order to accomplish this we have made some basic design changes in our traditional products; we have also introduced new models to our urban bus line in
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We invite all of our customers and friends to continue being a part of our Daewoo Bus family, to join this new generation and share with us business, success, and vision, as well as the great commitment of providing users with an efficient, consistent, comfortable, and secure transport system.
Best wishes, Max Anderson Head of Daewoo Bus America
12.5m City Bus Designed to make money
245 / 270 HP - EURO III
S P O T L I G H T
Daewoo Bus in Costa Rica A Tale of Success & Gratification hen we hear someone say that our roads are ran by buses manufactured in our country we are usually taken aback and find it difficult to imagine there is a bus factory in Costa Rica.
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Daewoo Bus Costa Rica finds its origins dating back to over 35 years ago as CIASA, a local car assembler and body shop for buses and trucks. An alliance between the COOPESA cooperative gave continuity to the assembly and manufacturing project, thus creating COOPESA’s Automotive Division. In 1992, COOPESA and a few bus distributors solidified an agreement that led to the creation of MAUCO, a company that continued to exclusively manufacture bodies for buses and trucks. Conversely, the Korean company Young An Hat had begun its operations in the manufacturing of caps and hats in Costa Rica in 1984. The company produced and exported headwear from the free zone of Cartago. With its investment in the country, Young An acquired MAUCO in 1995, thus becoming the only bus manufacturer in the country at the time; it established itself under the automotive signing of Young An S.A. By 1998 it began importing Korean chassis, developed a unique body model of aerodynamic European style, and began its sale in Costa Rica. In 2003, after eight years of operations in Costa Rica, the national factory obtained its legal status under the new name of Daewoo Bus Costa Rica S.A. The company was finally able to focus on the production and sale of technical support and investment from the Korean parent family of Daewoo Bus. In line with its investment plan,
the companied continued to invest in the plant and equipment with an emphasis on technological development in order to be able to keep up with rising market needs and investment expansion. Consequently, Daewoo Bus is credited both in Costa Rica as well as in Central America as an established, serious, responsible company with offering high quality and technical support. Nowadays, Daewoo Bus CR has the capacity to hold 300 buses per year in its Santa Ana facilities. To this day it has over 100 workers who produce four types of buses, making Daewoo cover more than 30% of the Costa Rican market. Thanks to our business model, buses are also exported to countries like Panama, El Salvador, Nicaragua, Dominican Republic and Haiti. After the acquisition of Daewoo in 2003, the Young An Group acquired the U.S. forklift brand Clark in 2004. Daewoo Bus has established itself worldwide in 7 countries with about 3000 employees producing over 23,000 buses annually in its 9 factories. Recently Daewoo Bus unveiled a new minibus for 22 to 28 passengers, whose launch was a great success in 2012. Thanks to this it has become a highly solvent commercial vehicle manufacturer after the year 2014, as ventures in segment 12 and 15 passengers minibuses and soon into the light cargo truck. Currently, Daewoo Bus aims to build a network in the Americas and their first step has been connecting Mexico, Colombia and Chile while having to Costa Rica serve as the regional headquarters. The company strongly supports
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the development of human resources, the technical sector, and sales network based on manufacturing as well as sales experience abroad. Also, Daewoo is part of the Baik Foundation of corporate social responsibility in six nations, in an attempt to give hope to children on a global scale, an initiative of Mr. S. H. Baik - Founder and President of the company. An orphanage was established in 1994 in Cartago, Costa Rica and has counted with the continued support of the company along with that of the Catholic Foundation through the years. Daewoo Bus is the only Korean company in the field of manufacture investing in Costa Rica, counting with 100% national employees. We are also contributing to the advancement of public transport through local manufacturing. The presence of Daewoo Bus helps the economic development of our country by increasing the number of jobs, technology transfer in the manufacture of buses and the opening of new markets of exportation in Central America and the Caribbean. Through the continuous development of automotive products and the increase in exports, Daewoo Bus Costa Rica S.A. will put forth its best effort to maintain the consumer preference in the Central American area, the Caribbean and in new areas of major challenges, such as the South American market and Mexico. That is our biggest commitment and purpose, in addition maintaining the high level of quality, service and support we are known for.
OUR
COMPANY
The Customer Satisfaction Guarantee The role of After-Sales in DWBCR
Juan Carlos Córdoba After Sales Manager DWB CR he After-Sales department is responsible for providing follow-up services, support and guarantees to our customers after their purchases. Why is the After-Sales service an essential part of Daewoo Bus?
in addition to the one-year warranty, we provide a special follow-up after the sale to evaluate and ensure the proper functioning of our units. Part of this follow-up consists of observing the response of the first kilometers in all the different bus systems as a means to guarantee its adequate functioning. This The mission of After Sales is to provide follow-up also allows us to make some our customers with the most technical suggestions that may help personalized, high-quality service, increase the bus’ efficiency. executing the fastest technical solutions and spare parts while using our training In addition, our support goes transcends as a base—it is the foundation upon the warranty. This is why we schedule which everything is set. Our team is the weekly visits to each of our customers. machine that keeps the gears moving; We carry these out in order to meet each and they are responsible for the of our customer’s inquiries and needs. fulfillment of the mission in our area. This is a free service offered without Therefore, we set very high standards for taking into account the conditions of the ourselves time and time again, ensuring one-year warranty. Our goal is to guide that every individual customer is tended our customer in technical matters by to in the most cordial manner, with having the cost and operation efficiency proven mastery of the different topics in mind at all times. that surge within our products. The training we provide is an essential Providing support and warranty point. Our training is especially geared fulfillment to our customers is another toward the operational and technical key factor for ensuring their safety and sector of the companies who have peace of mind. Regarding our warranties, honored us with their purchase; our
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objective is to train and guide the representatives who have to operate and maintain the machinery, thus increasing the useful life of the units on a daily basis. To ensure the quality of our training, we have an operations plant, which has the requisite infrastructure to offer practical training for each one of our buses; it is also equipped with a training room for optimal learning. At the end of our training, we offer a special certificate of approval and involvement, which is acknowledged by the Council of Public Transport in their periodic evaluations. At the end of the day, the heart of our sales lies in our customers themselves. The opinion and experience of our customers are fundamental not only to the area, but DWBCR in general, since our designs are based on our clients’ needs to aid them in the different services they provide. The ongoing feedback between our customers and us allows for the revision an adjustment of our models with the objective of maintaining continuous improvement in all our products.
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On Buses and the Transportation System Problems and solutions of the modern bus system in Costa Rica. stress, fewer traffic jams, decreased pollution whilst having the certainty that they will arrive on time.
1. 7600 Law There are many topics worth discussing and analyzing regarding the 7600 law, such as: the elderly, preferential seating and bus ramps for disabled. When our elderly citizens were allowed free public transport, the means to control the entry of older adults was not regulated properly. Nowadays, the process of the “Golden Citizen” card has changed and it is enough to just show the elderly’s ID, which is the reason for the investment of adding digital ID reader; however, this has helped, but not solved, the problem of injustice. All of us who work in this service stand in solidarity with the elderly, but boundaries must be set. It has been tallied that a single older citizen has made up to ten bus trips; most of the time this phenomenon is due to their becoming a nuisance for their families, who send them on “errands”. The average person makes six trips per day. The elderly are a responsibility for everyone, not just of those who use the bus service and must carry the weight of the tariff raise so the elderly can have their free trips. A large part of the people who travel by bus are of low-income status. It is unfair that they are the ones who have to pay for multiple trips. ¿What happens with those who have no use for the bus service? Doctors, journalists, congressmen, lawyers... Where is their solidarity to cover this service? The law needs to be adjusted to encompass everyone’s collaboration, not only from those of lower income. The occupation of preferential seats is another issue as there is no objective criterion to define the priorities for their use and it is often left at the driver’s discretion. Despite the fact that only 6% of the ramps for disabled are used in GAM, they are an obligation for every single bus fleet. Unfortunately, only buses comply with this law since neither stops nor sidewalks usually comply with the regulations of the law to help the handicapped since they have not been modified for their optimal use. The solutions are within regulation with well-made laws that are designed with common sense. It is a reasonable goal to have the MOPT and local governments make adequate bus stops and sidewalks. At the same time, we have to raise awareness within the families regarding their older relatives, so they can stop being seen as a nuisance, and encouraged to provide safe places for their enjoyment, sharing, feel useful. They should become equally functioning members of society because in the end we all carry the responsibility. We have to stop those ten unnecessary trips per day. It is also necessary to have a sense of equanimity between the rest of the individuals who travel via bus. The creation of a law that obliges us to collaborate is necessary.
3. Un-coordinated Government
Alex Alvarez President AMSA
2. Priority in the streets. Our country's public transportation system mobilizes roughly 76% of the population. There is a large variety of people who use our public service, specially the bulk of productive people in the country: nurses, teachers, housewives, students, etc. Therefore, when other drivers disrespect the free transit of a bus or the bus driver, they are not only disrespecting the driver but all the passengers inside. This is the particular reason why the bus has to have priority in the streets over a normal vehicle, which usually only carries 1-2 peoples on an average trip and can occupy over half of the space of a bus. When mobilizing such large amounts of people in a single vehicle, the environmental impact is lower in comparison to those individuals traveling by car. A single bus can transport on average up to 60 passengers in one trip, while a car transports a mere average of 1.4 persons. We need 42 cars with the average occupancy to achieve the average occupancy of a single bus and they would take 200 meters, while a single bus just fits in 12 meters. This begs the question: Who pollutes less per person? What is the more efficient means of transportation? Who should be given priority? For these and many other reasons, public transport should be given priority in the streets and should be considered a priority in our country's road planning. By only giving our buses priority, routes would be faster and may be reduced by about 15 - 20 minutes in the GAM. People could leave their cars at home and travel comfortably via pubic transport with less
The two forces that coordinate the country in the field of transport are the CTP (MOPT) and ARESEP, but in overall, the authority is not clear. ARESEP has tried to regulate in the technical—operative part by means of tariff. Now there are outdated rates and this has been to the detriment of the public transport system. They have tried to modify the rate calculation model but it has resulted in countless arguments depending on the person in charge, benefiting some yet hurting most. This calculation has proven to be equitative with both user and the businessman as long as it is not manipulated. ARESEP should only be an institution of a technical nature, which calculates and approves or disapproves the tariff. It should not serve as the customer’s defender or the businessman’s hangman. Therefore, it should recognize only the technical matters and transport policy dictated by CTP (MOPT) as governing body of the public transport. It does not have a reason to try to regulate technical transport matter if it is is uncertain of what the country needs, wants or can pay within the next 20 years. The MOPT must notify ARESEP so it can calculate the tariff cost; meanwhile, for us, the businessmen, let's be clear if we can or cannot comply with the clear and just rules for all the parts. As long as this issue fails to be addressed, a huge problem will rise as MOPT requires new buses following their specifications in accordance to their medium and long term plans, but ARESEP has neither the value nor the classification of the calculated rates for them and assigns different fares or old bus fares. Who's going to pay these new buses? Another problem is that the domestic enterprises have little government support. When a buses factory imports only the raw material for the manufacture at national level of a bus, the tariffs are complicated since they are usually based on the entire bus in customs in order to calculate the cost of the bus. Therefore, the cost of the manufacture is not taken into account. We need to speed up and review the processes of rate calculations so we can also support our national companies. We need more transparency and security in every governmental process because the name “public transport” does not make it free. The government has to open its eyes before it’s too late and the illegal forms of transportation take over the streets as it is already happening. Some South American countries failed to open their eyes on time and were forced to watch their transportation system collapse. They had to start from the very beginning. We don’t want that for Costa Rica.
The articles here written are transcripts of intellectual property and free opinion of the authors- important businessmen of the stipendiary public transport, and under their
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OUR
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Between buses, MOPT & ARESEP The reality of Costa Rica’s road network and the challenge that the MOPT faces
Addressing the current issues of the bus service in our public stipendiary transport system. The national transportation system faces a number of disadvantages in the development of optimal operations; one of the most serious problems is the fact that there are no clear policies. ARESEP–MOPT issue is a matter of great concern. MOPT is the entity that governs the area of transportation, but ARESEP takes in its hands roles that do not correspond to him. Why does it happen? Is it possible that the MOPT has no authority left?
Costa Rica’s Road System
Mario Bermúdez President ATD
MOPT, as a governing body and policy manager, must take the direction of the sector with firmness and precision with the support of its two regulatory bodies to enforce the policies of sector development: the CTP, as its supervisory and regulatory entity and ARESEP as regulator of economic policies and rates for the sector, which in its function allows the profitability of companies so that they can access to the modernization and quality of the service. The transportation sector is troubled. The regulating authorities have made mistakes that have resulted in compensation to the transport companies. A clear example shows ARESEP who has made mistakes in rate adjustments. Also, the same regulatory authority is trying to include conditions on tariff models that will damage the quality of service provided such as altering the depreciation of buses from 7 to 15 years, which will only result in the use of older units that could be a lethal blow in the areas of quality and punctuality of service—not to mention customer safety. If this happens, we would go back to the old “school bus” which is in very poor condition when compared to our models. The entities that execute actions and give problems with the terms of service are the MOPT and local governments. The 4th Avenue is a clear example of a decision where the local government somehow convinces MOPT of closing part of the street to build walkways, changing the routes, making them less efficient; the only ones who lose are the customers. This park had bus stops connecting Eastern and southern parts of the city on all sides, but now customers have to walk long distances to get to their desired stop. ¿Where is MOPT’s voice? Isn’t it important for governing bodies to provide an efficient service to their citizens? In the economic field, our greatest concern is the rise of the Colón-Dollar exchange rate. We work for a service sector where the devaluation of our currency affects our inputs, which are 90% imported and 10% domestically produced. It is imperative to remember that petrol is the greatest input by volume of purchase and which, by its own nature, is heavily influenced by the dollar exchange rate. The rates we charge are fixed in Colones with outdated calculations at the time of application and in settings where the adjustment for national effects of inflation are delayed; thus affecting every economic factor essential for the proper functioning of any company.
Based on the opinions of the press, friends and, of course, based on our own observations, the road system has collapsed.
Our company recently completed a study put together by experts in the topics of transportation and highway safety. It will serve as a strong foundation to ask the MOPT to impulse and adjust some measures. The consulting was done using specialized software, and performed a simulation of the traffic in our city—Desamparados—and foresees that in about 5 years, the center of the city’s road system will collapse and it will become virtually inaccessible due to traffic jams. With these forecasts, our company has raised concerns and suggested proposals designed by experts in the field in order to change the actual road system. We have had no response from authorities whatsoever—not even to open a discussion forum. We believe that no government has had the wisdom and foresight to see what has happened in other countries and take the necessary measures to avoid it in Costa Rica. We require that every entity adhere to their specified roles and tasks. We are ready to meet each of the requirements of the case, as we have already been doing. We urge MOPT to define a clear line and a clear plan (specially long term) so that it won’t be affected by changes in the government, to have a plan and an established way without whimsical changes or influences by unrelated factors. MOPT has to take into account our nation’s reality and establish regulations and rules. For example, it is ludicrous that they want to demand the use of Euro 4 and Euro 5 engine technologies, when our diesel fails to fulfill the factory requirements and therefore would lead to severe engine damage. Furthermore, the lack of coordination between MOPT and local governments is also adrift in a deficiency that affects users. Such is the case that laws, agreements, and contracts have been signed where the parts commit to the creation of necessary walkways and ramps, especially those for our handicapped users. We are still waiting for such alterations to this day. We speak about these topics and denounce them in favor of our customers, who are the heart and soul of our company and any service company, and to whom we owe respect, consideration and the best quality in the service we provide. In the end, they are the ones who suffer the consequences of bad decisions made by governmental entities, which at the same time forbid the service providers to change the terms of service for the benefit of both users and providers.
authorization and responsability; are published hereby as courtesy of DWBCR and its total or partial contents do not consitute review or criteria of this company on these topics.
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