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GM Daewoo to Recall 58,000 Vehicles in S.Korea

Recall due to defective steering wheels and flawed fuel hoses

GM Daewoo, the South Korean subsidiary of GM on March 22 recalled more than 58,000 vehicles because of defects. The recall affects vehicles sold in South Korea but will be expanded to include those sold abroad, according to GM Daewoo, the country's third-largest carmaker.

The company gave no immediate idea of the size of the foreign recall, or which countries would be affected.

"GM Daewoo Auto and Technology has reported that it will recall 58,696 vehicles that it has made and sold in Winstorm, Lacetti Premiere and Damas models due to manufacturing defects," Seoul's ministry of land, transport and maritime affairs said.

The recall will affect 45,957 Winstorm sport-utility vehicles, 12,604 Lacetti Premiere sedans and 135 Damas microvans, the ministry said.

Defective steering wheels were found in Winstorm models sold from 2006 to 2007 while flawed fuel hoses were discovered in Lacetti Premiere cars sold from 2009 to early 2010. Damas vans sold in 2009 were found to have been manufactured with insufficient fire safety measures, it said.

"A recall will be announced in other countries, where the models were exported, but we have yet to get you the exact figure," a GM Daewoo spokesman said. Outside South Korea, GM Daewoo sells the Winstorm and the Lacetti Premiere models as the Chevrolet Captiva and Chevrolet Cruze.

GM Daewoo, which has said it intends to return to profit this year, suffered net losses in 2008 and 2009 amid falling demand in the global downturn. The company aims to increase its exports 13% year-on-year to 1.6 million vehicles this year, and targets a domestic market share of more than 9.9%, following a drop to 7.9% in 2009.

Copyright Agence France-Presse, 2010

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