FRANKFURT, SEPT 21: US-based General Motor Corporation is keen on taking over the assets of Daewoo Motor Company (DMC) of South Korea, including its Indian subsidiary Daewoo Motors India Limited.Though negotiations have been initiated in this regard, a final decision on the same is yet to be arrived at, senior company officials said here. ``We are still collecting detailed information on Daewoo Motors and are looking at all its assets. This is as part of GM's plans to forge greater linkages in the East Asian region,'' said Kevin E Wale, executive-in-charge, operations of General Motors Asia Pacific.GM, he said, is looking at more acquisitions in the east, but is yet to zero in on the companies. Regarding the reasons for being keen on acquiring Daewoo, Wale said,'' Daewoo brings with it several assets like a great regional presence in East Asia, a good distribution network in several developing countries and an active low cost and small car model. Besides, we are not at all present in Korea and Daewoo brings with it a great presence in this market.''It may be recalled that GM and Daewoo group have reached an alliance on restructuring the debt-ridden Daewoo Motor Company and serious negotiations on the same are on at present.The automaking unit of South Korea's embattled Daewoo group has already announced in Seoul that it was willing to give up managerial rights to General Motors Corp in an effort to reach an alliance. According to industry analysts, Daewoo Motors offered about a 50 per cent stake in the company to GM for about seven billion dollars.Meanwhile, as part of its exercise to seek greater presence in the region, GM had recently announced plans to join hands with Suzuki Motor Corporation of Japan for producing an Asia car. The company is also planning to make India one of the production sites for the Asia car.India, in fact, figures among the five nations which are being explored as possible bases for the Asia car, that would be positioned in the bottom-end or the small car segment of the passenger car market. The other nations include China, Indonesia, Thailand and Taiwan.``This is as part of our initiative to develop and produce a car specially made for the Asian markets. We already have a strong relationship with Suzuki and wanted to take it further with the development of this new car,'' Wale said. GM presently controls about ten per cent stake in Suzuki.Though both the partners have agreed to join hands for the project, the finer details on the nature of arrangement are yet to be worked out, he said. ``Besides, it is yet to be decided as to whose plant would be used in countries where both GM and Suzuki have separate subsidiaries, like in India.''In India, GM operates through a wholly owned subsidiary - General Motors India Limited (GMIL) - while Suzuki has a 50-50 joint venture with the Government of India - Maruti Udyog Limited. ``But, it is for sure that the existing facility of one of the manufacturers would be utilised as we are not looking at setting up a separate unit or venture for the purpose,'' Wale added.He further stated that GM has no plans, for the present, to further hike its stake in Suzuki beyond ten per cent.General Motors has already pledged to invest around eight billion dollars in Europe from 1993-2003, of which close to nine billion deutsche mark would be infused in Germany alone. These investments would be utilised for creating new facilities and expanding the existing units.
