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GM Daewoo introduced the Daewoo Kalos in September 2002, based on a new platform, replacing the Daewoo Lanos (T100). Under development before Daewoo's bankruptcy, the Kalos was the company's first new model introduction following its subsequent takeover by General Motors. Manufacture of the Kalos began in early March 2002, with pre-production prototypes shown at the Geneva Auto Show in April 2002. The nameplate Kalos derives from the Greek word καλός (kalós) for "beautiful" and "good".

Originally designed by Italdesign, the Kalos derives directly from the "Kalos Dream" concept vehicle first presented at the 2000 Paris Motor Show and subsequent developmental concepts at the 2001 Frankfurt Motor Show, 2002 Geneva Motor Show, and 2003 Geneva Motor Show. During this three-year development period Daewoo was struggling financially, with the ultimate fate of the company and the concept vehicle remaining uncertain.