GM Korea confirmed plans to resume production of the Damas and Labo mini commercial vehicles after the government agreed to delay the imposition of stricter CO2 emissions standards on these models.
Production was halted in January because of the higher costs involved in bringing these models in line with new CO2 emission and safety standards introduced by the South Korean government.
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The Damas mini-van and the Labo mini-truck are the only mini commercial vehicles on sale in South Korea. Combined sales jumped by over 48% to 20,658 units last year, with many small business owners rushing in to the market after news of the line closure began to circulate.
At a meeting with South Korean president Park Geun-hye last week, GM Korea agreed to develop a 99km/h speed limiter, a tyre pressure monitoring system and an on-board diagnostic system over the next two years to bring the vehicles in line with the stricter standards.
