General
Motors will be back in Seoul this week for new talks on possibly taking over bankrupt
Daewoo Motor, a senior official from Daewoo’s creditor bank told Agent France
Presse on Tuesday.
"We expect some progress in the negotiations because GM officials are
coming here this week," Lee Song-Kun from the board of directors of Korea
Development Bank said.
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AFP said that GM has not made clear its intention toward the acqusition of
Daewoo Motor, but with anxiety growing in South Korea over the automaker, President
Kim Dae-Jung met GM chairman Jake Smith in Chicago last week.
South Korean commerce and industry minister Shin Kook-Hwan has given GM until
the end of April to commit to buying Daewoo Motor, saying it would otherwise
look at other options for the automaker.
But Lee dismissed concerns that any further delay in the purchase of Daewoo
Motor would be detrimental to the troubled firm.
He stressed that Daewoo Motor would not need further financial assistance from
creditor banks in the latter half of the year.
He said Daewoo Motor executives and creditor banks would meet consultants from
Arthur Andersen to discuss a report which recommended the shutdown of Daewoo’s
main Pupyong plant in the western city of Inchon.
Creditors contend GM is still interested in acquiring Daewoo Motor, which has
an annual production capacity of 1.06 million vehicles in South Korea and another
875,000 in overseas plants.
Sources at Daewoo Motor told AFP that GM executives discussed the purchase
of Daewoo Motor earlier this week in Detroit but put off a final decision until
early April.
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