Pyeonghwa Motors , a Korean language word for "peace", also spelled Pyonghwa, is one of the two car manufacturers and dealers in the North Korean automotive industry. Until 2013 It was a joint venture in Nampo between Pyonghwa Motors of Seoul, a company owned by Sun Myung Moon's Unification Church, and the North Korean Ryonbong General Corp. The joint venture produced small cars under licence from Fiat and Brilliance China Auto, a pickup truck and an SUV using complete knock down kits from Chinese manufacturer Dandong Shuguang, and a luxury car of Mercedes-Benz/SsangYong design. From 2013, the company has been fully owned by the North Korean state. Pyeonghwa has the exclusive rights to car production, purchase, and sale of used cars in North Korea. However, most North Koreans are unable to afford a car. Because of the very small market for cars in the country, Pyeonghwa's output is reportedly very low. In 2003, only 314 cars were produced even though the factory had the facilities to produce up to 10,000 cars a year. Erik van Ingen Schenau, author of the book Automobiles Made in North Korea, has estimated the company's total production in 2005 at not more than around 400 units.
History
Pyeonghwa Motors was officially founded by the Unification Church. The venture came during the period of the Sunshine Policy between North and South Korea, when sanctions on the country were not as tough. The venture was announced in 2000. In 2002, around $55 million to build the factory, with the first production line in Nampo was completed and the first Hwiparam was produced The Premio and Pronto introduced in 2004. In 2009, PM earned about $700,000 from the sale of 650 cars, $500,000 remitted to South Korea Park Sang-Kwon, Pyeonghwa Motors president, started talks to end investment in 2012. The Unification Church officially transferred all investment to Pyongyang in 2013.
In summer 2006, the North Korean government magazine Foreign Trade, which advertises North Korean products, published a photograph of a new luxury car produced by Pyeonghwa, the Junma, which appears to be a rebadged version of the South KoreanSsangYong Chairman. The Chairman bears a strong resemblance to Mercedes-Benz cars, which are favored by North Korean government officials. The Junma is based on an old Mercedes E-Class design. In 2006, Pyeonghwa reached an agreement with Chinese manufacturer Brilliance China Auto to assemble its Jinbei Haise vans, which are based on an old version of the Toyota Hiace. In 2007, Pyeonghwa introduced Brilliance's Junjie car under the name Hwiparam II. The original Fiat-based Hwiparam has appeared on Pyeonghwa's web site. In 2009, Pyeonghwa announced a profit on its North Korean operations. The Premio and Pronto are also sold in Vietnam by Mekong Auto. Both are based on Huanghai vehicles. Mekong Auto has sold Fiat cars in Vietnam since 1995, and this relationship may have led to Pyeonghwa assembling Fiats in North Korea.
Advertising
Pyeonghwa is currently the only company in North Korea to advertise. A series of billboards and TV commercials have been made in an effort to show residents that their country is able to produce products such as motor vehicles. The ads may be aimed primarily at expatriate businessmen in Pyongyang, but Car and Driver magazine suggests that they are actually propaganda aimed at the local population, to make them believe that their country is economically successful.
