Vauxhall's next Frontera model range is to be built by Daewoo.

General Motors has approved a plan for the next-generation sport utility vehicle to be produced at the South Korean firm it took over in 2000 – the year the last Frontera rolled off the line at Luton.

A prototype of the off-road car, sized to compete with the Land Rover Freelander, will be alongside next year’s new Matiz city car on the Daewoo stand at the Paris Motor Show in September.

Based on the platform developed for a new GM Saturn car in the US, it will mark Daewoo’s diesel debut by using a new Korean-built 2.0-litre common rail unit developed jointly with VM Motori, of Italy.

A GM Daewoo spokesman said that officials in Detroit had earmarked Korea as the sole source of the Frontera.

He said: ‘It means we will be building the car with Vauxhall, Opel and Daewoo badges.

‘When the new Frontera goes on sale in 2006, it will give European customers the choice of two versions of the same car. Given that Daewoo has been positioned as the lower priced brand with high levels of equipment, it could present Vauxhall with a few problems over specification and pricing.’