GM Daewoo to develop small cars for European market

GM Daewoo is planning to develop two small cars as part of General Motors’ efforts to expand its market share in Europe. With growing demand for compacts in Europe, GM’s Korean subsidiary is heading up the development of compacts to be rolled out there from 2013, a spokesperson said. Different from GM Daewoo’s Chevrolet Aveo which will hit the Korean market next year, the models will be in the same class as the Corsa supermini by Opel, GM’s European subsidiary. GM Daewoo will also gradually introduce compacts with higher fuel efficiency for the European market. According to industry watchers, the move will allow GM to take advantage of the gradual scrapping of tariffs on cars under the Korea-European Union free trade agreement, which will come into effect next year. Chevrolet Europe aims to double its annual sales in the European market to one million units by 2015, and procure 98% of its cars from GM Daewoo, including the Korean automaker’s plant in Uzbekistan, president Wayne Brannon said last month. (November 30, 2010)