GM Daewoo UK has reassured owners that the planned establishment of a new sales organisation in the UK has not been affected by the ‘administration’ of the outgoing importer, Daewoo Cars, a move that usually ends in closure of the business and liquidation of the assets.
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GM Daewoo UK expects to be operational later this month, pending final negotiations in South Korea.
Around five months ago, an agreement was signed between General Motors and the creditors of the Daewoo Motor Company. There have been a number of hold-ups since – notably a dispute between Korean parts suppliers over slow payments by the Daewoo vehicle factories.
The new UK company — GM Daewoo Auto and Technology (GM DAT) — will be based in Korea with former GM Vauxhall managing director Nick Reilly as president and CEO.
GM will hold a 42.1% share of the new company; Suzuki and another GM alliance partner will hold a combined stake of 24.9% with creditors of the former company holding the remaining 33%.
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By GlobalDataTogerther with the US distribution and service operation, the UK’s Daewoo Cars was not included in the deal and this has now resulted in the administrator’s appointment.
The BBC reported that closing the business would cost about 450 jobs, with 120 alone at the Ricksmansworth head office, just outside London.
The GM-run Daewoo distributor plans to introduce itself to exisiting and potential owners and show off the recently unveiled Kalos hatchback alongside other new models at this month’s Birmingham motor show.
