Daewoo Motor has followed this week’s sale of major assets to General Motors with the launch of its new Kalos compact in Korea yesterday.


The new car, Daewoo’s first in two years, made a surprise debut at the Geneva motor show in March where it attracted considerable interest from rivals. It will replace the Lanos.


In an indication of how Daewoo will operate in the future, sales operations to be set up under the joint venture announced between the company, GM and Daewoo creditors on Tuesday will distribute the new car in Europe (as a Daewoo) and the United States (with a GM nameplate).


However, the Daewoo plant excluded from the GM deal – Pupyong – will build the Kalos for the new joint venture, Daewoo officials said.


Displaying the car at the Geneva motor show, Daewoo said the hatchback version “represents a fusion between small car and MPV (minivan) styling”. It follows the recent trend in Europe for small hatchbacks with tall roof lines, upright minivan-like seating positions and flexible load- and passenger-carrying layouts.

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The new Daewoo hatchback is likely to compete with Honda’s Jazz (Fit), the Citroen C3, Ford Fiesta, Suzuki Liana and Mitsubishi Colt Space Star when it goes on sale in Europe in the second half of the year. The sedan version has similar styling to the recently launched Liana saloon.


The Kalos (Greek for “beautiful”) is, like the outgoing Lanos, offered in four-door sedan or five-door hatchback forms and will target buyers in the 20-to-30 age bracket.


It could be an ideal entry-level model for GM in North America to replace the defunct Suzuki-designed Geo Metro, though it is larger and better equipped.


The Kalos will be sold in Europe with 1.2- and 1.4-litre petrol engines. Five-speed manual transmission is standard with an intelligent four-speed automatic optional.


The Kalos has a 2480 mm wheelbase with short front and rear overhangs and MacPherson strut front and torsion beam rear suspension.


Daewoo said it would sell over 3,500 Kalos models a month at home in South Korea and plans to export about 20,000 units this year, mostly to Europe. US sales start next year.