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SOUTH KOREA: Ford offered U.S. $950 mln for Ssangyong Motor

By just-auto.com editorial team | 6 July 2000

Ford Motor Company offered $950 million for Ssangyong Motor when it submitted its proposal to acquire Daewoo Motor last week, said the Korea Economic Daily on Wednesday. Ford also proposed to maintain the debt-laden automaker as an independent unit from Daewoo Motor, said the newspaper. Internally, Ford's offer is higher than was expected.

Industry analysts pointed out that the U.S. automaker offered a higher-than-expected price for Ssangyong due to the belief that the bankrupt automaker may enable Ford to meet increasing global demand for multi-purpose vehicles, reported the newspaper.

Ford proposed to pay a total of $6.9 billion for Daewoo Motor, its sister firm Ssangyong Motor and other automobile-related affiliates, a government official said earlier.

Meanwhile, the DaimlerChrysler-Hyundai consortium reportedly offered $780 million for Ssangyong Motor, said the newspaper.

As the sole primary candidate for the Daewoo Motor auction, Ford will conduct a second due diligence on Daewoo Motor from July 10-Aug. 19--which is to include a broad and detailed evaluation of all aspects of Daewoo Motor, including employees, suppliers, creditors, and the status of its plants, according to Daewoo Motor.