Daewoo India in talks with FIs for revamp

“The customers in India will continue to get spares and service for the Daewoo products — Matiz, Cielo and Nexia. As of today, DMIL has enough quantities of spare parts and it will continue to replenish,” the company’s deputy managing director DW Kim said in a statement.

DMIL was left out in a takeover deal signed on April 30 between US auto giant General Motors, bankrupt Daewoo Motor and its creditors in South Korea. This had led to uncertainty about its capacity to supply spares and meet servicing needs of its customers.

“We are in a perfect position to serve the requirements of all Daewoo car owners and to clear any doubts in DMIL’s service abilities in future,” Kim said. He said discussions were on with domestic financial institutions and creditors for financial restructuring and DMIL was confident of arriving at a “solution in the near future”.

“Some hard internal restructuring measures are also required and the same would be taken up immediately for resource generation,” Kim added, without giving details of the measures. There was uncertainty regarding the availability of spares and service for the existing cars in the country.

Daewoo Motors India is 91.6 per cent owned by Daewoo Corp, the parent of Daewoo Motor Korea. The remaining stake is held by domestic financial institutions and public.

As per the tripartite agreement, “those manufacturing facilities of Daewoo Motor Co that are not being acquired, several will continue to be supplied parts, components and technical assistance from the company for a period of time”.