GM Plans To Sell GM Daewoo Cars In China Via Shanghai Partner

SEOUL - February 19,2003; Dow Jones reported that General Motors Corp. plans to sell cars made by its South Korean joint venture GM Daewoo Automotive & Technology Co. in China, GM's Group Vice Chairman and Chairman for North America Bob Lutz said in an interview with Yonhap News Agency Wednesday.

The automobiles will be sold through GM's Chinese joint venture GM Shanghai, he said.

Lutz didn't elaborate further on the China export plan, including the timeframe or car models to be marketed.

GM Daewoo's entry into China through GM Shanghai was widely expected in the industry, as GM has said it plans to sell cars all over the world through its own and its alliance partners' networks.

GM Shanghai is a 50/50 joint venture of GM and Shanghai Automotive Industries Corp., or SAIC, which also owns a 10% stake in GM Daewoo.

Suzuki Motors Corp. of Japan, another shareholder of GM Daewoo, will expand its current sales alliance with GM Daewoo to include sharing information in research and development, Lutz said.

As reported last week, GM plans to sell three GM Daewoo cars in the U.S. and Canada from the second half of the year through the distribution networks of Suzuki and Chevrolet.

Lutz also said GM plans to closely cooperate with GM Daewoo in design, research and development to develop gasoline, diesel engines and hybrid power cars.