|
GM, Daewoo discuss links
|
 |
August 24, 1999: 9:41 a.m. ET
U.S. and Korean carmakers in talks that could lead to joint operations
|
NEW YORK (CNNfn) - General Motors Corp. officials are in Seoul, South Korea, for talks with Daewoo Group about linking their automotive manufacturing operations.
The substantive part of the discussions is to begin Wednesday, according to local media, and will explore ways to create a strategic partnership between the two companies in the region.
Earlier this month, General Motors and Daewoo announced plans to begin discussions. Initially, there was speculation GM would buy a controlling stake in Daewoo's automotive operations, but officials said it was more likely some sort of strategic alliance would be set.
In addition, the president of Daewoo Motors, Kim Tae-gou, said at the time the talks eventually could lead to GM taking over some management functions of the Daewoo auto unit.
The two firms currently have several joint operations, mostly in automotive component manufacturing, and GM once had a 50 percent stake in Daewoo's car unit, before selling it in 1991.
Daewoo Group, South Korea's second-largest conglomerate, is in the midst of restructuring its finances to pay off debt.
The company was rescued from the threat of bankruptcy in July when a consortium of 69 banks allowed Daewoo to restructure some of its debt.
In return, Daewoo agreed to restructure and shed some of its assets, including cutting its operations from 25 units to six auto-related businesses.
The divestitures will include its shipyard, its brokerage firm -- South Korea's largest -- along with telecommunications and construction interests. In doing so, Daewoo hopes to get as much as $15 billion to pay off some of the debt. 
-- from staff and wire reports
|
|
|
|
|
|
General Motors
Daewoo
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
