Daewoo may sell off Indian arm

SURAJPUR, FEBRUARY 16: Daewoo Motors India Ltd DMIL will figure in the list of Daewoo overseas subsidiaries to be sold off to either of ...

SURAJPUR, FEBRUARY 16: Daewoo Motors India Ltd DMIL will figure in the list of Daewoo overseas subsidiaries to be sold off to either of the two US auto giants 8211; General Motors Corporation and Ford Motor Company.

8220;Though negotiations are being held at the top level in Korea and we are not aware of the final decisions, I personally feel that Daewoo Motors India would figure in the acquisition talks for Daewoo8217;s overseas operations,8221; DMIL new managing director Young-Chang Kim told newspersons here today.

A General Motors8217; team had last year visited the Surajpur facility of DMIL for valuation and 8220;they were satisfied with our facilities and quality levels.8221;

8220;At present, both GM and Ford are in the race for acquiring Daewoo8230; I would not be able to say anything else beyond this for the present,8221; Kim added.

South Korea had yesterday formally invited the world8217;s two biggest auto makers 8211; General Motors and Ford Motor 8211; to bid for the crippled Daewoo Motor Company. The corporate restructuring committee, which is overseeing attempts to sell bankrupt Daewoo Motor, has sent out invitation letters to 8220;less than ten8221; firms, including the two United States giants and South Korea8217;s Hyundai Motor Co.

8220;Invitations have been sent to less than ten firms including GM, Ford and Hyundai, Kim Jong-Do, a senior manager in charge of the auction proceedings had said.

The move means GM and Ford are now officially locked in a race to acquire the bankrupt South Korean firm as part of the battle to boost their Asian presence and dominate the global market.

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Reports said a total of six car makers, five of them foreign, had been invited to bid in the limited international auction. Earlier news reports had said the other three firms expected to be allowed to bid for Daewoo, which is saddled with around 16 billion in debt, were Daimler Chrysler, Fiat and Volkswagen.

Meanwhile, GM has stated that it wants to take over the sales and financing arms of Daewoo Motor as well as the main body of the company. GM has told Daewoo creditors that it wants to acquire most of the Daewoo group8217;s auto business, managing director Han Young-Chul of the corporation restructuring committee of the Daewoo group has said.

This means that GM wants to buy Daewoo Motors and its overseas operations, its jeep-making Sangyong Motors, Daewoo Capital and Daewoo Motor sales as a package, Han said.