General Motors Daewoo-reviving joint venture will be launched next month despite a parts supply boycott that halted production, a GM executive told Reuters earlier today.
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Daewoo Motor was shut for a third day on Friday as major parts makers suspended supplies over $US700 million in unpaid bills as representatives from about 190 suppliers met to discuss whether to end the boycott, Reuters said.
“We will be able to launch the new joint venture GM Daewoo Auto and Technology as scheduled in September,” Kim Jung-soo, vice president of the joint venture, told Reuters.
Kim was confident that suppliers would soon reach an agreement with Daewoo, Reuters added.
Kim also told Reuters that GM was concerned that disruptions at Daewoo Motor and its suppliers could hurt supplier employees as well as Daewoo.
