GM Daewoo Auto & Technology Co., the South Korean unit of General Motors Corp. (GM), said Monday it will become part of New GM as the parent company proceeds with its Chapter 11 filing in the U.S.

"GM Daewoo's vehicle development activities, including GM's global mini and small car programs based at GM Daewoo, are continuing as planned," GM Daewoo President and Chief Executive Michael Grimaldi said in a statement.

All of GM Daewoo's operations in Korea and overseas subsidiaries, including Vietnam manufacturing operations (VIDAMCO) and Chevrolet-Europe, as well as GM Korea will also belong to New GM, said the statement.

But a union spokesman expressed concern when he said "the agreement that small cars will also be produced in the U.S. may threaten the status of GM Daewoo as the global manufacturing base of small cars."

GM plans to be responsible for 70% of its global production volume of mini and small cars, including the Lacetti Premiere sedan, in the U.S. by 2013, said the spokesman who declined to be named.

GM filed for Chapter 11 bankruptcy protection in New York Monday after a decades-long series of management miscues and production problems exacerbated by stiff foreign competition and rising oil prices.

The Obama administration Sunday said the government would provide an additional $30 billion in financing to GM in return for 60% equity in the new company and $8.8 billion in debt and preferred stock.

-By Kyong-Ae Choi, Dow Jones Newswires; 822-2198-2236; kyong-ae.choi@dowjones.com