INCHEON, South Korea -- GM Daewoo Auto & Technology Co. aims to boost sales by 64 percent to nearly 3 million units in five years as the South Korean unit plays a bigger role in General Motors' global strategy.
GM Daewoo, which accounts for about 22 percent of GM's worldwide sales, is on track to sell 1.83 million vehicles in 2010. But business is expected to expand by 10 percent annually through 2015, said Ankush Arora, vice president for sales and marketing. That clip would lift GM Daewoo's sales to 2.95 million vehicles.
Most of the growth will come from exports to Europe, where Daewoo-made cars typically are sold under the Chevrolet brand. Chevrolet aims for a fourfold increase in European volume to 1 million units by 2016, and GM Daewoo expects to supply 95 percent of those vehicles.
"The possibilities are just growth for us," GM Daewoo CEO Mike Arcamone said in an interview last month at the company's headquarters. "What we see is a steady, positive trend."
With its specialty in small-car engineering, GM Daewoo is positioned to tap growing demand for cars such as the Chevrolet Cruze and Aveo -- both of which were developed in South Korea.
GM Daewoo exports to 150 countries. More than two-thirds of GM Daewoo's product is shipped overseas as knockdown kits; the rest is exported or sold in South Korea as completed vehicles. As sales expand, the share of completed vehicles will rise.
Ankush estimated that finished vehicles will account for half of all output by 2015.