Ford gives up taking over Daewoo Motor

Ford Motor on Friday gave up its bid to take over Daewoo Motor.The decision of the priority negotiator in the international tender for the sale of the ailing automaker is feared to have an enormously bad influence on the national economy as the solution of Daewoo crisis that has been hurting the economy over the past two years became shrouded again.

Creditors of Daewoo Motor and the Daewoo restructuring committee will announce the future course of action on the Daewoo Motor sale on Monday.

In a statement issued under the name of vice chairman Wayne Booker after a meeting of directors of board at its U.S. headquarters on Thursday, Ford said it has decided not to make a final offer for the acquisition of Daewoo Motor both for Daewoo and Ford.

The Daewoo restructuring committee also said in a statement, expressing regrets over the Ford's decision, that it would make efforts to help the corporate restructuring agreed between Daewoo Motor and its creditors proceed swiftly and without fail despite the latest

situation.

An official of the committee that ``we were informed of the decision of the Ford's board of directors in the morning and discuss with creditors how to cope with it.''

He said the committee and the creditors decided to finalize the future course of action in their another meeting on Monday.

Meanwhile, Lee Keun-young, chairman of the Financial Supervisory Commission,told reporters that diverse methods may be mobilized to sell Daewoo Motor, but the formula adopted when Ford was chosen as the priority negotiator is still effective.

His remarks indicate that either GM-Fiat or Hyundai-DaimlerChrysler consortiums which took part in the bidding in February may be chosen as the priority negotiator.