GM Daewoo to move Matiz production to China

GM Daewoo to move Matiz production to China

General Motor’s GM Daewoo division has said in a statement that they plan to move its production facility for the Matiz subcompact car to China by 2010.

The company added that they further plan to gradually move assembly lines for mid-sized cars to China and India in the coming years.

GM Daewoo just recently showed their new Lacetti Wagon model. The company added that labor costs in South Korea are very high and this is the primary reason for moving these production capabilities to China and India.

The company seems to have already started working on plans to move production out of South Korea.

GM Daewoo added that it will be possible to manufacture cars in China and then import them back to Korea within 3 years.

Interestingly, GM is already in the process of launching the Spark model based on Matiz in India sometime this year.