Hyundai
Motor does not want to take over the management of ailing Daewoo Motor, its top
executive told the Korea Herald via a spokesman, citing various adverse effects
from a Hyundai monopoly of the domestic car market.
Park Byung-jae, vice chairman of Hyundai Motor, told the newspaper that Hyundai
would not consider commission management for Daewoo Motor, even if the Korean
government made such a request.
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"Hyundai is determined to focus on normalising the management of affiliate
Kia Motors and expanding domestic sales and exports," Park, travelling
in Canada, was quoted as telling company spokesmen.
"Even if General Motors fails in its bid to buy Daewoo, Hyundai’s stance
will not change."
The Herald said that Park’s remarks came as he was being tipped as the most
likely management commissioner for Daewoo under a government contingency plan
reported by Korean-language newspapers last week.
The reports said that the Seoul government may press Hyundai Motor to take
over Daewoo’s management, with vice chairman Park serving as commissioner.
A Hyundai spokesman, who spoke with Park by phone, told the Korea Herald that
the vice chairman categorically denied the news reports and made clear his intention
not to seek the Daewoo position under any circumstances. Park also denied any
discussions with DaimlerChrysler on the issue of getting involved in the management
of Daewoo in the wake of Ford Motor’s withdrawal from its Daewoo bid last fall,
according to the spokesman.
According to the newspaper, industry analysts believe that Hyundai’s aversion
to buying Daewoo stems from concerns over protests from its shareholders and
monopoly-related trade conflicts.
It added that U.S. and European countries are protesting invisible trade barriers
to the sale of foreign cars in Korea.
However, the Herald said, some analysts are speculating that Hyundai may accept
a government proposal of commission management for Daewoo, if favourable conditions
are attached.
The Korea Herald also says that a growing number of watchers at home and abroad
forecast that GM may eventually withdraw from its talks to buy Daewoo Motor
due to price differences.
GM’s pullout would then prompt the Korean government to mull over various contingency
plans, including nationalisation or takeover by Hyundai Motor, the newspaper
said.
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