Preparing an Alternative in Daewoo Motors Disposal, aside from GM.

While the Daewoo Motors disposal is in the 2nd negotiation between the disposal team and the US General Motors (GM) in Hong Kong, the comments and paths of both company CEOs are of interest.

According to automobile business sector on August 20, GM, who had kept `No comments` all the way, announced its strategy after the potential purchase of Daewoo Motors, which is interpreted as `progress forward`.

Richard Wagoner, CEO of GM (photo), said, ``Once GM purchases Daewoo Motors, this may contribute to the business expansion in Asia and Pacific regions. Eventually, the market share of GM in this region will be enhanced from 4 percent to 10 percent in 2004.`` This was reported by foreign newspapers recently.

He also signaled positively, ``Some automobiles manufactured by Daewoo Motors are appropriate not only to Korea, but also to other areas in the world.``

Wagoner said, ``The acceptance of Daewoo Motors allows for the business expansion into Korea and East Europe markets, and it can be used for us competing in the US market in terms of economical automobiles.``

A senior official in automobile business said, ``It appears obvious that GM has been considering how to take advantage of the Daewoo Motors purchase in various aspects.``

Lee Jong-Dae, CEO of Daewoo Motors, is visiting the US from August 17 through 23. A officer in Daewoo Motors said, ``CEO Lee is visiting Los Angeles, New York, Atlanta and other places, encouraging local sales corporations. There is no plan to visit Detroit, where the GM headquarters is located.``

CEO Lee had originally planned to visit the US near the end of last month. However, since Daewoo Motors Union dispatched a protesting team of `GM acceptance Opposition` to the US after GM`s purchase proposal, he postponed his visit.

Automobile business sector predicts that CEO Lee may contact GM by any means during his stay in the US. In particular, prior to his departure to the US, the executives of Daewoo Motors Union changed its view from strong opposition to moderate position, saying ``Depending on the negotiation processes, we will decide.``

An officer involved in the Daewoo Motors disposal said, ``CEO Lee may issue a message to GM not to worry about the union problems at least.``

daviskim@donga.com