The South Korean subsidiary of US auto giant General Motors Monday unveiled a 3.6 billion dollar investment plan to develop new cars, officials said.
“GM Daewoo will invest 1.6 trillion won in facilities and 1.7 trillion won in research and development,” a company spokesman told AFP.
The plan to invest 3.3 trillion won (3.6 billion dollars) in 2008 and 2009 was disclosed by GM Daewoo Auto and Technology CEO Michael Grimaldi, in a ceremony marking the fifth anniversary of the company.
The spokesman quoted Grimaldi as saying GM Daewoo expects to sell 1.8 million vehicles in 2007, including 900,000 on a knockdown basis, at home and abroad. The company sold 1.5 million units last year.
GM Daewoo posted an operating profit of 335 billion won last year, its first profit since its creation in 2002. But domestic sales plunged 34 percent to 8,539 units and exports fell 5.7 percent to 59,495 last month.
Grimaldi vowed to boost domestic sales by developing new models.
In July, Grimaldi said GM Daewoo planned to invest more than six billion dollars over the next four years.
