Daewoo's US sales and service operation will file for bankruptcy "within days", a company official told Associated Press.

"We basically don't have any products we can distribute any more because GM is going to control production," Mike Mahoney, general manager of field operations at Daewoo Motor America, told AP in an interview.

The AP report cited Mahoney as saying that only 60 staff are left at the company's Compton, California headquarters out of a workforce that once peaked at about 300.

AP added that a lawyer representing approximately 300 US Daewoo dealers will soon lodge a federal class action lawsuit against General Motors, Daewoo Motor and the Korea Development Bank following the filing of statutory actions with the Texas, Florida and Pennsylvania motor vehicle bureaus.

AP said that all of the actions claim GM broke state franchise laws and misled dealers before it said last week that it buy a share of a new company that includes the assets of the bankrupt South Korean automaker Daewoo Motor but not Daewoo Motor America.

At the time GM said the unnamed new company would sell Daewoo brand vehicles outside North America, would sell GM-branded versions in Mexico and could do the same in the United States, AP reported.

The lawsuits allege that GM would break state franchise laws if it sells Daewoo cars under GM brands in the US.

GM said publicly early on that it had no intention of selling Daewoo vehicles in the United States if the deal was closed, GM spokesman Jerry Dubrowski told Associated Press.