By Ryu Jin
Staff Reporter
GM Daewoo Auto & Technology, the South Korean unit of General Motors (GM), has started mass production of six-speed automatic transmissions to help the U.S. auto giant sell more efficient vehicles in Asia, according to company officials Wednesday.
GM Daewoo has invested 460 billion won ($488 million) to construct the transmission production facility in Boryeong, South Chungcheong Province.
Located about 190 kilometers south of Seoul, the factory has an annual production capacity of 300,000 six-speed transmissions and 250,000 four-speed ones.
GM Daewoo President and CEO Michael A. Grimaldi said at a completion ceremony that the company plans to double its annual capacity for six-speed transmissions by 2010.
Last month, the automaker launched the new ``Tosca Premium 6,’’ which is the country’s first mid-sized sedan equipped with a six-speed automatic transmission and other upgrades.
Company officials said that, owing to the wide overall ratio, the Tosca Premium 6 with a 2.5-liter engine delivers up to 15 percent better fuel economy compared to its predecessor with a five-speed automatic transmission when constantly driven at 90-120 km/h.
GM Daewoo, the country’s third-largest automaker, said earlier this year that it aims to sell 140,000 vehicles domestically in 2008, up 7.2 percent from last year, with the launch of several new models.