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General
Motors may pick up stake in Daewoo India
Our
Corporate Bureau
New Delhi, Oct 17: US automobile giant General Motors
(GM) has evinced interest in picking up equity stake in Daewoo
Motors India Limited (DMIL) after completion of formalities
for acquisition of a majority stake in Daewoo Motors, Korea.
Briefing reporters over the ongoing negotiations, DMIL managing
director and chief executive officer Young Tae Cho said the
due diligence process is on and GM will complete formalities
of acquiring 67 per cent of Daewoo Motors, Korea by December.
Mr Cho said post-GM takeover, Daewoo Korea will continue to
support DMIL and provide Completely Knocked Down (CKD) kits,
spares and technical assistance.
“The focus is to bring profitability to DMIL operations, after
which, stake could be picked up by GM,” Mr Cho stated.
Mr Cho revealed that DMIL is also scouting for buyers for
its engineering and transmission plant, but refused to divulge
details.
In light of the GM-Daewoo Motors negotiations, the ownership
pattern of DMIL will also undergo a change. Daewoo Corporation
holds 92 per cent stake of DMIL, while the remaining 8 per
cent is held by the institutions and public.
As per legal arrangements, Mr Cho said the stake of Daewoo
Corporation will be transferred to Daewoo Motors.
DMIL is also planning to launch new models next year. The
company will be launching New Matiz early next year and will
be powered by two engine options of 800cc and 1000cc, Mr Cho
said. Coinciding with the global launch, the new entity of
GM-Daewoo Motors will take over the T-200 project of Daewoo
Motors and roll out Kalos, the multi-engine and multi platform
car in February. DMIL will launch Kalos in July next year
in sedan and hatchback variants. The engine will also offer
three variants 1200cc, 1400cc, and 1600cc.
Commenting on increasing the productivity of the company,
Mr Cho pointed out that the automobile industry must have
flexible management policies permitting manpower adjustments
in relation to the demand situation of the industry.
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