Daewoo eyes Honda CR-V

GM Daewoo says it is confident its recovery will be new model-led.

According to Daewoo chief executive officer Nick Reilly, the lack of a Honda CR-V style sport-utility vehicle and no diesel engine availability in Europe is holding it back now, but once they come on stream from 2005, sales are expected to rise significantly.

Using the Lacetti hatchback's debut at the September Frankfurt motor show to highlight GM Daewoo’s current prognosis almost a year after its birth, Mr Reilly believes he can triple sales worldwide by 2006/2007.

And to help kick things along, the South Korean company – in which Holden is the largest shareholder - will also unveil several new models by then.

A Lacetti four-door wagon will arrive locally late next year, according to GM Daewoo Australia general manager Graeme Coverdale.

But GM Daewoo is tight-lipped about further J200 variants, which are expected to include the compact 4WD it says will debut in 2005.

Mr Reilly did reveal that, unlike the Kia Sorento it apes in size and proportion, the new SUV with definitely be car-based, and not have a ladder frame chassis, because this is where the future for such vehicles lie.

Holden is co-developing this car and it is also expected to use the new Melbourne-built HV6 engine in some models.