From the Reuters, the Chevrolet’s Aveo replacement model has been postponed until January 2011 due to the well-publicized financial troubles at General Motors and its Korean subsidiary, Daewoo. Before this, the Aveo’s replacement with the codenamed T300, had been expected to bow in April of 2010.
Daewoo has reported a whopping 44.5-percent decline in total vehicle sales over the first four months of 2009, which comes as particularly bad news for The General since the Korean automaker accounts for a quarter of GM’s total production. Much of that production is being lost to rivals like Hyundai and Kia in oh-so-important emerging market of China. Meanwhile, Daewoo’s sales dropped by 3.2-percent even in the face of an expanding market.
In order to keep the doors open in the face of such heavy losses, GM Daewoo is seeking additional loans from the Korea Development Bank after running through all $2 billion of its available credit lines.
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