GM says Daewoo Motor part of its global strategy<\/p>\n
SEOUL (Reuters): General Motors sees bankrupt Daewoo Motor as
\npart of its global strategy and signed research pacts with South
\nKorean universities on Monday to underscore its commitment to the
\nlocal market.<\/p>\n
GM and partner Fiat are in talks with Daewoo's creditors on
\nbuying the firm, which sold over 945,000 vehicles last year and
\nhas sprawling operations spanning 12 countries. The automaker
\ncrumbled under an interest-bearing debt burden estimated at $7.45
\nbillion at June 30.<\/p>\n
\"Daewoo Motor is a part of General Motors' global strategy and
\nthe Korean market is very important to GM,\" David Jerome,
\nmanaging director of GM Korea, told a news conference.<\/p>\n
Daewoo Motor could provide the world's largest automaker with
\na stepping stone not only to South Korea's largely closed market,
\nbut to other parts of Asia and Eastern Europe where the company's
\nplants are scattered.<\/p>\n
Out of more than 900,000 vehicles sold in South Korea last
\nyear, about 340,000 of them were made by Daewoo, compared to less
\nthan 2,500 for every foreign maker combined.<\/p>\n
GM on Monday signed pacts with several Korean universities to
\nlaunch joint research projects involving recyclable manufacturing
\nmaterials and electronic controls for chassis and emissions
\nsystems.<\/p>\n
\"This sort of technological cooperation shows GM's perfect
\ncommitment to Korea,\" he said. \"We remain consistently interested
\nin Daewoo. And GM will be a good partner for Korea in the future
\nas in the past.\"<\/p>\n
The two firms had a 15-year partnership that broke off in 1992
\nas the South Korean firm set out on an ambitious plan for
\ninternational expansion.<\/p>\n
Jerome did not elaborate on how takeover talks involving GM,
\npartner Fiat and Daewoo's creditors were proceeding, citing a
\nconfidentiality agreement.<\/p>\n
But Daewoo Motor's chairman Lee Jong-dae told Reuters on
\nSaturday they were \"steady and slow\".<\/p>\n
\"I believe time is now on our side in negotiations with GM,\"
\nLee told Reuters. \"I don't feel we should hurry up to conclude
\nthe sale talks.\"<\/p>\n
Daewoo Motor went bankrupt last month after creditors who had
\nrescued it and 11 other Daewoo Group firms in August 1999 cut off
\nfunds.<\/p>\n
The jolt shut down the company's largest plant and sent
\nsuppliers scurrying, but the banks agreed to 727.9 billion won
\n($602.6 million) in fresh funding last week after the automaker's
\nunion agreed to job cuts.<\/p>\n
A key issue is bringing Daewoo Motor, which has models
\nincluding the Matiz minicar and Nubira and Lanos sedans, back to
\nprofitability.<\/p>\n
Daewoo posted a net loss of 1.42 trillion won on sales of 4.66
\ntrillion won for the first nine months of the year.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/gm-says-daewoo-motor-part-of-its-global-strategy-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}