General Motors is still in negotiations to buy a Chinese engine plant which was set up by South Korea’s Daewoo Motor, GM Asia-Pacific president Fritz Henderson told Reuters on Wednesday as he denied recent reports that the talks had been called off.
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“We’re negotiating,” Henderson reportedly told reporters at a briefing in Detroit. “There’s a dance. We do have an interest in the plant.”
Reuters noted that Daewoo said in March that GM was set to buy the $US228 million plant in Yantai in Shandong province, capable of producing 240,000 engines and transmissions a year, from its creditors, and officials at the South Korean conglomerate had said talks hinged on a price for the Chinese engine venture, which GM said the ailing Asian car maker wanted to sell.
GM and partners took a majority stake in some of the assets of Daewoo Motor last year, creating the new company GM Daewoo Automotive and Technology Co. Daewoo Motor is now in the process of liquidating assets not covered by the acquisition, Reuters added.
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