28.5.2004
GM Daewoo breaks ground for new diesel plant in Korea

GM Daewoo Auto & Technology (GM Daewoo) yesterday broke ground for its new diesel engine plant in Gunsan, Korea. Total investment in the diesel program, including engineering development, will be close to 475 billion Korean won (over 320 million euros). The 19,200-square-meter facility, which is adjacent to GM Daewoo’s vehicle manufacturing facility in Gunsan, will produce a new family of Euro IV-compliant 1.5-liter and 2.0-liter diesel engines . The engines will power a range of vehicles to be sold in both the domestic Korean market and export regions including Europe.

The production facility’s machine line will be 90 percent automated and the engine assembly line 40 percent automated. The entire plant will be designed for flexibility in order to accommodate future engine products. It will have more than 250 employees . Construction of the plant is expected to be completed in April 2005, with production commencing in early 2006. The annual manufacturing c apacity will exceed 250,000 units.

GM Daewoo President and CEO Nick Reilly said, “ The new plant will make GM Daewoo a stronger competitor by giving us an important new source of diesel engines that are in high demand the world over . By leveraging the expertise of VM Motori and GM Powertrain, we will produce diesel engines that provide the highest value and efficiency in the industry.”

In March, GM Daewoo signed a licensing agreement with Italian diesel maker,
VM Motori, to develop the new engines. They will be tuned to optimize the unique characteristics and requirements of each vehicle. The engines will feature common-rail technology and meet the Euro IV emission standard. Selected applications, including a new, compact-class SUV, will feature a diesel particulate filter.