GM Daewoo to develop minicars for parent group

GM Daewoo Auto & Technology Co. said it will develop minicar platforms, in addition to small cars, for the entire General Motors Group, its new CEO said yesterday. The automaker is currently developing a slightly larger successor to the Matiz minicar, slated for debut in early 2009, a company official said.

Carmakers under the GM Group are to use the basic architecture developed by the Korean unit to manufacture minicars with engine displacements under 1 liter, a market where the group currently accounts for about 5 percent or 200,000 units.

"Our team will design and develop new minicars in two to five years and this will give us the potential to grow further in the Asia-Pacific as well as more traditional markets like Europe where minicars are popular," said Michael Grimaldi, chief executive of GM Daewoo.

He noted that the new products are expected to double GM Group's minicar sales to 400,000 units.
Read Article