GM Daewoo said it would return to profit this year and aims to export 1.6m vehicles, as well as increase domestic sales by 20%.

The South Korean unit of General Motors is targeting double-digit sales growth in 2010 according to local reports.

GM Daewoo benefited from a US$450m injection from its parent last year and president and chief executive Mike Arcamone said: “We’re self-sufficient. We are generating cash and don’t need a line of credit.”

The company will use “aggressive” sales techniques, improved dealer networks and reduced structural costs to achieve the profit.

Arcamone said GM Daewoo – the third largest automaker in sales terms – did not require creditor support and that its liquidity position was “very solid.”

GM Daewoo is responsible for GM’s small car design and engineering and is seen as crucial to the carmaker’s plans to sell more vehicles in emerging markets and meet tougher fuel economy standards in the US.

Much of its output is sold under the Chevrolet brand. Other local reports said it was considering dropping the Daewoo brand in Korea, too.