GM Proposes Taking Over Five Daewoo Motor Plants

SEOUL: U.S. automaker General Motors Corp. has submitted a letter of intent to domestic creditors of South Korea's Daewoo Motor to take over five of the company's manufacturing plants in Korea and 12 overseas facilities, the Maeil Economic Daily reported. Korea's Corporate Restructuring Committee will decide by the end of the year whether to accept the proposal, according to the newspaper. Executives of GM submitted the proposal during a meeting on Dec. 13 with Lee Hun-Jai, chairman of the Financial Supervisory Commission, the report said. Maeil also reported that GM is seeking exclusive negotiation rights and is promising to maintain Daewoo's brand and guarantee employment for its current employees. However, because GM is requesting that the Korean government resolve Daewoo Motor's debt of 18 trillion won (US$15.6 billion) the negotiations are expected to be difficult, reported the newspaper.