May 28, 2004

GM Daewoo breaks ground for new diesel plant in Korea

Seoul, South Korea – GM Daewoo Auto & Technology (GM Daewoo) broke ground for its new diesel engine plant in Gunsan, Korea on Wednesday. Construction of the plant is expected to be completed in April 2005, with production commencing in early 2006. The annual manufacturing capacity will exceed 250,000 units. Total investment in the diesel program, including engineering development, will be close to 475 billion Korean won (over 320 million euros).

The 19,200-square-metre facility, which is adjacent to GM Daewoo’s vehicle manufacturing facility in Gunsan, will produce a new family of Euro IV-compliant 1.5-litre and 2.0-litre diesel engines. The engines will power a range of vehicles to be sold in both the domestic Korean market and export regions.

In March, GM Daewoo signed a licensing agreement with Italian diesel maker,
VM Motori, to develop the new engines. They will be tuned to optimize the unique characteristics and requirements of each vehicle. The engines will feature common-rail technology and meet the Euro IV emission standard. Selected applications, including a new, compact-class SUV, will feature a diesel particulate filter.

GM Daewoo Auto & Technology, which is based in Incheon, Korea, was established in 2002. It has three manufacturing facilities in Korea as well as an assembly facility in Vietnam. GM Daewoo products also are assembled at GM facilities in China, Thailand and India.

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