Introduced as an upgrade for the Daewoo brand, the Matiz was designed by Giugiaro as a possible replacement for the Fiat 500. The Italian carmaker rejected the project, and Daewoo bought it instead. As a result, it launched the Matiz in 1998.
In 2002, General Motors bought the Korean carmaker and pushed for a second generation, which it launched in 2005. Daewoo vastly improved the Matiz over its predecessor even though it kept the same platform.
First of all, the car received a new, updated look penned in the new-edge design theme, with swept-back headlights and sharp lines on the hood. The overall shape was kept, but the new design touches made the car look better. Finally, it received body-colored door handles and mirrors.
Inside, the Matiz II featured a new dashboard with a center stack extended on the lower side. Depending on the trim level, it featured AC and a stereo for the upper trim level, while the lower ones provided only a ventilation system. The manually adjustable rear-view mirrors were unusual for a 2005 vehicle, but its price under $10,000 was also a major selling point.
Under the hood, Daewoo switched to a new engine generation with four cylinders. It complied with the Euro 5 emission standards, which also helped with the London congestion charge. The inline-four unit sent its power to the front wheels via a five-speed manual, which was the only transmission option for most of the markets. Later on, GM rebadged the Matiz II as Chevrolet Spark.