GM Daewoo looks to move 180,000 Matiz this year

Seoul February 21, 2005; Kim So-hyun writing for the akorea hearald reported that GM Daewoo Auto & Technology Co. said yesterday that it targets exports of 180,000 Matiz minicars worldwide this year.

"We plan to export the New Matiz to Europe in May and to Mexico in August," GM Daewoo Chief Executive Officer Nick Reilly said at a news conference in Seoul to unveil the revamped third generation model of the popular minicar.

Korea's third-largest automaker aims to sell 50,000 Matiz cars in Korea this year but has not set a date for the Matiz' entry to the North American market, according to Reilly.

1.4 million Matiz cars have been sold around the world since its release in 1998.

Referring to recent legal wrangling with Chinese maker Chery over its QQ minicar, which GM Daewoo says is a complete copy of the Matiz, Reilly made assurances that his company has registered international patents related to the new model to prevent similar design piracy.

The Korean subsidiary of U.S. auto giant General Motors has sold the Matiz in China as the Chevrolet Spark since 2003.

Reilly also said GM Daewoo has no plans to put diesel engines in the Matiz since it will make the car much more expensive, undermining the price competitiveness of the minicar.

GM Daewoo plans to place a 1-liter gasoline engine in the model sold domestically, the CEO added. The upgrade will replace the 800-cc engine currently available.

Available in nine exterior colors with 80 percent of the components completely new, the Matiz sets new standards for mini-vehicles in terms of styling, safety, comfort and fuel economy, according to Reilly.

The new Matiz with a manual transmission comes in four trim levels.

The Van retails for 5.88 million won, the City for 6.26 million, the Joy for 6.76 million and the Super for 7.21 million. An additional 1.25 million won will be charged for an automatic transmission.

GM Daewoo, based in the western port city of Incheon, has five manufacturing facilities in Korea and an assembly plant in Vietnam. GM Daewoo cars are also assembled at GM facilities in China, Thailand, India and Colombia. In 2004, GM Daewoo sold more than 900,000 vehicles with exports to more than 140 countries.