Korea's Samsung Sets Tough Goals with Auto-Manufacturing Program

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SEOUL - The Samsung Motors Inc. unit of Korean Samsung Group intends to invest $13 billion over the next 14 years to start up the country's newest carmaking operations.

Given government approval to enter the tightly controlled automotive market only last year, Samsung Motors won't introduce its first car until 1998. But by 2010, the fledgling manufacturer intends to become one of the world's 10 largest automakers - a goal causing deep concern among Samsung's Korean competitors, as well as future rivals abroad.

But some industry analysts warn Samsung's plans face a series of obstacles, including mounting trade frictions and global automotive overcapacity.

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