Daewoo Motor Corp. has agreed to sell its engine factory business in Yantai, China, to General Motors’ China unit, Dow Jones Newswires reported, citing the Yonhap News agency.
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The report noted that Daewoo Motor is a remaining company from the bankrupt Daewoo Group, and now exists only to oversee the sale of the company’s overseas units.
Citing the Yonhap report, Dow Jones said GM China will likely pay $US60 million to $70 million for Daewoo Automotive Engines Ltd, and the purchase price includes the factory’s assets and liabilities.
“All necessary procedures for the sale are expected to be completed as early as next month. The sale of other overseas factories is also being negotiated actively,” Yonhap reportedly quoted an unnamed Daewoo Motor official as saying.
Daewoo Motor declined to comment to Dow Jones on the report.
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By GlobalDataA Daewoo Motor official did, however, tell Dow Jones Newswires that Daewoo Automotive Engines was jointly established with Sahndong Investment & Trust Corp. in 1996 and produces 300,000 engines annually.
Dow Jones noted that Daewoo Motor was dissolved in 1999, after its parent Daewoo Group failed to cope with mounting debt, and its Korean automotive manufacturing unit was sold to General Motors in 2002.
