The new company would have annual revenues of about $5 billion and would own and operate selected domestic and foreign assets of Daewoo Motor Company. The transaction is expected to close within two to three months, pending court and government approvals. Daewoo will continue to manage and operate its businesses until closing.
"This is an important day for GM," said GM Chairman John F. Smith, Jr. "GM's investment in this new company allows us to participate in the important South Korean market, and share in the benefits associated with its outstanding product development and manufacturing capabilities. This enterprise will produce a new generation of cost competitive vehicles that can be marketed around the world."
"Today's agreements represent a significant milestone for Korea. These agreements not only save thousands of jobs in South Korea, but also provide a powerful boost for the industry and the economy as a whole," said Jung Keun-yong, governor of the Korean Development Bank. "They send a powerful message that Korea is open for business - that Korea is a good place to invest and a good place in which to do business."