GM considering building new Daewoo model in China

SEOUL, May 24 Reuters reported that General Motors Corp, which recently acquired key assets of South Korea's bankrupt Daewoo Motor Co, is considering building a new Daewoo model in China, a Daewoo official said on Friday.

"There are talks going on over the production of J-200 in GM's plant in Shanghai," the high-ranking Daewoo Motor official told Reuters. "It is likely that the production will begin early next year once they decide to do so," he said. The official declined to be identified.

The J-200 is a new model due to succeed the Nubira compact passenger car.

Separately, the Korea Economic Daily reported on Friday GM and Daewoo were planning to use Isuzu-made diesel engines for Daewoo cars. In addition, they would provide GM's plants in Mexico and Brazil with platforms from Daewoo's sub-compact passenger cars, the Kalos and Matiz, the paper said.

Isuzu Motors is GM's struggling Japanese truck unit.

A GM official said there were no plans to share platforms other than in the case of the J-200 in China.

"We are working on overall business plans now," a GM official told Reuters. "We are not considering sharing platforms. The production of J-200 in China is the only plan we are considering now".

Capping more than a year of talks, GM last month agreed to lead a $400 million investment with unnamed partners to take a controlling stake in a joint venture with Daewoo's creditors.