A company spokesman has confirmed a local newspaper report on Friday that GM Daewoo Automotive & Technology Co. plans to invest $US1 billion on facilities and research and development over the next two to three years, Dow Jones reported.
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According to Dow Jones, the Korea Economic Daily cited GM Daewoo’s president and chief executive Nick Reilly as saying the company plans to finalise the medium-term investment plans in the second half of this year.
GM Daewoo spokesman Kim Sung-Su told Dow Jones GM Daewoo is likely to raise the funds through a loan from state-run Korea Development Bank.
The news agency noted that, when Korea Development Bank sold a stake in failed Daewoo Motor to GM in 2002, the bank agreed to provide as much as $2 billion in loans to GM Daewoo later if necessary to revive the operations of the Korean car maker.
Most of the medium-term investment will likely to go into developing new vehicles as GM Daewoo plans to introduce two new models in 2005, Dow Jones added.
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By GlobalDataKim told the news agency that GM Daewoo aims to release a large passenger car in early 2005 and a sports utility vehicle later that year.
Separately, he told Dow Jones that GM Daewoo is targeting sales of about 400,000 vehicles this year, up 42% year on year, and exporting an additional 200,000 units on a knockdown, or partly assembled, basis.
During the first six months of this year, GM Daewoo sold 224,589 vehicles, including knockdown kit sales, up 3.2% year on year, Dow Jones added.
