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SEOUL -- A group of Daewoo Motor Co.'s U.S. dealers took out a full-page advertisement in a local newspaper Monday that said General Motors Corp.'s takeover of assets of South Korea's third- largest automaker may shortchange the country.
"Korea is on the verge of obtaining even greater worldwide respect for its automobile capabilities, but it looks like GM intends to keep Daewoo's best car from the U.S.," said the ad by the Ad Hoc Committee of Daewoo's U.S. Dealer Council, which represents dealers operating in the U.S.
The advert appeared in the English-language Korea Herald. The committee fears that GM will exclude the Magnus 6-cylinder from its U.S. product range, though GM has not confirmed this.
GM signed a memorandum of understanding last September to acquire Daewoo Motor, including two manufacturing plants in Korea, and a factory each in Egypt and Vietnam in a $400 million deal. GM would also purchase 22 overseas sales units, which are located mainly in Europe. But because of newly discovered debt, GM plans to reduce the number of units it acquires by about half, according to Daewoo creditors, who are also planning to provide a $2 billion loan to GM that was not included in the...