SEOUL, Nov 20 (Reuters) - GM Daewoo Auto & Technology Co, South Korea's third largest automaker, said on Wednesday it expected to produce 400,000 units next year, up a third on this year's estimate.
"Next year is only a start-up year. We are expecting 400,000 units in production", Nick Reilly, GM Daewoo president and chief executive, told reporters. He added thatGM Daewoo saw finished car production this year at around 300,000 units. Reilly said that the group was unlikely to break-even soon. "We don't want to speculate on that, but we don't think a break-even point would be before 2005", he added.
GM agreed in April to take a majority stake in GM Daewoo for $251 million, providing the world's largest automaker with a springboard to expand in Asia's fast-growing automobile market.
At home, GM Daewoo faces the task of regaining market share lost to rivals Hyundai Motor Co , South Korea's largest automaker, and its affiliate Kia Motors Corp , during the years the former Daewoo Motor faced financial troubles after the collapse of parent Daewoo Group.
GM Daewoo holds around a 10 percent share of South Korea's 1.6 million vehicle market, around half its share in 1996.