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S.Korea's GM Daewoo sees 2003 exports doubling

SEOUL, April 21 (Reuters) - General Motors Corp's South Korean unit said on Monday it expects exports this year to almost double to 250,000 units and hit around 300,000 in 2004, as shipments to North America and the Middle East resume.

Shipments to the key U.S. market, as well as to Canada and the Middle East, took a hit in the late 1990s due to the financial difficulties at parent Daewoo Group, which collapsed under massive debts in 1998.

GM Daewoo Auto & Technology Co, which is being used by the American giant as a platform for its Asian operations, represents only the second case in South Korea's closed auto market where an overseas auto maker has been able to gain a production foothold.

"We see exports to the United States and Canada resuming in the second half of this year," GM Daewoo spokesman Kim Sang-won quoted company CEO Nick Reilly as saying at a news conference in Pupyong, an industrial city west of Seoul.

GM Daewoo's largest plan is located in Pupyong.

GM, through its wholly-owned Australian unit, Holden Ltd, invested $251 million for a majority 42.1 percent stake in GM Daewoo Auto & Technology in October of last year, reviving key assets of South Korea's third largest auto maker.

State-run Korea Development Bank holds the second-largest stake worth $197 million.

Representing one of the smoothest foreign takeovers of a South Korean auto maker, France's Renault SA acquired a majority stake in Samsung Motors Inc in 1999.

Since then, the popularity of the mid-sized SM5 sedan has led unlisted Renault Samsung Motors Inc to introduce a second model -- a compact passenger car -- in South Korea, which has an automobile market of over 1.5 million vehicles annually.

GM Daewoo, which holds 10.6 percent of the domestic auto market, said it expects total sales to rise to 510,000 units this year from 377,000 a year ago, largely due to aggressive marketing and zero-interest financing for two compact models launched last year.

The total figures include exports of automobiles as knock-down kits for reassembly at overseas plants, Daewoo said.

GM Daewoo said late last year it was in the advanced stages of developing a sports utility vehicle (SUV) and a large sedan, which have been among the most popular segments among domestic consumers in recent years.

Reilly said on Monday the auto maker plans to speed up the release of the SUV and large sedan, but did not give a specific time frame, according to the company spokesman.

Unlisted GM Daewoo Auto & Technology includes three of Daewoo Motor's manufacturing plants, as well as nine overseas subsidiaries.

GM said on Saturday it had launched its latest car model in China, the Buick Excelle, based on the South Korean unit's small-to-mid-sized Lacetti car. A subcompact and a mid-sized sedan were also launched, based on GM Daewoo's Matiz and Magnus models, the auto maker said in a statement.

Shares of Daewoo Motor Sales Co , which trade as a proxy for unlisted GM Daewoo, closed up 2.16 percent at 8,990 won on Monday, outperforming a broader stock market index which ended down 0.63 percent.