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 |  May 25 2009, 1:22 PM

2009 chevrolet aveo5 lt 10

Due to the overall turmoil at General Motors these days a lot of  projects have been put on hold. Included in that list is the replacement for the current Aveo. A new Aveo, code named the T300, was due out in April of 2010, but now that product has been delayed until January of 2011.

The Aveo is built by GM Daewoo Auto and Technology, the Korean arm of General Motors, which was formed when GM bought the Daewoo automaker back in 2002.

GM Daewoo has already used up $2 billion in credit lines and is looking to secure a loan from the state-owned Korea Development Bank. It has suffered considerably during the worldwide recession with sales down 44.5 percent. That might not seem like much from a little-known and little-though-of offshoot of General Motors, but GM Daewoo accounts for 25 percent of GM’s total production.

The Aveo-replacement’s delay is particularly odd when you’d expect that GM, under the strict observance of the Obama Administration, would be focused on bringing small, fuel-efficient cars to market. (That certainly seems to be the case so far). And with the Aveo already long-in-the-tooth, sales of the model should continue to decline annually – making the need for a new Aveo all that more important.

According to a Reuters report, Japanese and Korean automakers (Hyundai and Kia in particular) are expected to gain market share from GM Daewoo in the small-car segment .

[Source: Reuters]