General Motors is harnessing the small car expertise of their Daewoo division to develop two new small cars, an upscale hatchback to be branded as a Vauxhall or Opel products, and a smaller, less expensive version likely to be sold as a Chevrolet.
The new cars are expected to slot in below the diminutive Corsa, a car considered too small for North America. But the growing popularity of cars like the Fiat 500 has provided some motivation for GM to develop their small car range, especially premium products that can compete with the 500, as well as upcoming entries from other European automakers.
In addition to the small car programs, GM is also looking to make Daewoo a hub for electric vehicle technology, including local production of the Chevrolet Volt.
[Source: Inside Line]