The
South Korean government is urging General Motors to decide quickly whether to
take over Daewoo Motor Co. once the ailing car firm resumes normal operations,
officials said Friday, according to a report from Associated Press.
“We can’t wait and wait for an extended period of time,” Lee Eun-hyong, a
spokeswoman for the Ministry of Commerce, Industry and Energy, told AP.
Go deeper with GlobalData
She was commenting on what she called the improved condition of Daewoo Motor
which reopened its main plant in Pupyong on Wednesday, three weeks after it
laid off 1,751 workers in a restructuring program.
and wait for an extended period of time“
– Lee Eun-hyong
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe restructuring was aimed at making the car firm more attractive to GM, which
entered negotiations to buy Daewoo last September after Ford withdrew from the
process, AP said.
On Thursday, Commerce, Industry and Energy Minister Shin Kuk-hwan said he hoped
that GM would make a decision on its takeover bid by the end of April.
“If Daewoo is left like this, its value will continue to drop. So we hope that
the problem would be resolved by around the end of April,” the spokeswoman
quoted her minister as telling local reporters.
She told AP that the minister’s remarks did not mean that a deadline has been
set for GM’s takeover decision or that GM has been served with a notice on any
deadline.
AP said the spokeswoman also quoted the minister as saying that if GM backs
away from Daewoo or offers an unacceptably low bid, government-controlled creditor
banks would look for another potential buyer.
To view related research reports, please follow the links below:- General Motors Strategic Review |
