GM Daewoo Motors Launch in the Middle of October

GM Daewoo Automotive Technology established by US GM and domestic creditors will launch in the middle of October.

As the liquidation plan that had been passed by authorised meeting submitted to Inchon Local Court by Daewoo Motors at 12th of September passed and the court approved the plan.

In the authorized meeting, 92.15% of creditors with security and 84.74% of creditors with insecurity voted for, so it passed over the minimum approval discretion of court 75% and 67% respectively.

According to the liquidation plan, 76% of the debt of Daewoo will be written-off in accordance with size of creditor, security and insecurity. 5 of Daewoo Motors such as domestic manufacturer, overseas manufacturers, Daewoo Service, etc will be sold separately. GM will requisite 9 manufacturers of Kunsan, Changwon, Vietnam, Germany and Austria, etc.

GM and domestic creditors including Industry Bank will invest 197 million dollars on GM Daewoo respectively. Additionally, creditors will lend 2billion dollars for long term investment and operation capital.

GM Daewoo announced immediately after the liquidation plan passed “we will complete the transfer of human resources and facilities as soon as possible” and added “ the launch of actual corporation will be realized in the middle of October after the expire of complaint period”

GM Daewoo will introduce the first model of J200 (project name) of 1500 cc level and new model of Magna of 2500cc level in November. So domestic automotive market will form troika of Hyundai-Kia Motors, Renaut-Samsung and GM-Daewoo.

Rae-Jeong Park ecopark@donga.com