North Korea's Secret Auto Industry
Following Japan's defeat in World War II, the north of Korea, which was a Japanese colony, fell under Soviet control and the west fell under American control. Later, with the North's conversion to communism, Korea was divided into North and South Korea.
Seeking to establish an automobile industry, North Korea established the Sungri Motor Factory and began assembling the Soviet Gaz M20 car and trucks. North Korea also exported the Soviet Gaz Volga car. North Korea, having purchased 1,000 Volvo 144s from Volvo, refused to pay for the Volvos.
As relations with South Korea improved, the Pyeonghwa Automobile Company was established with South Korean investment. The factory began assembling the Fiat Siena and Fiat Doblo with parts from Italy. The vehicles were sold under the Hywparam brand. Later, North Korea withdrew from its agreement with Fiat and partnered with Chinese manufacturers to produce Chinese cars. Heads of state drive luxury Mercedes S-Class and luxury Toyota SUVs. It is estimated that there are 30,000 cars in North Korea.