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Tuesday, 19 February, 2002, 12:13 GMT
GM sees Daewoo deal in 60 days
General Motors hopes to finalise an agreement to buy troubled Korean car firm Daewoo Motor "no later than April".

But Fritz Henderson, GM's regional vice-president for Asia Pacific, said also warned that difficulties surrounding the deal remained.

"Thirty (days) is probably tight. Sixty is probably reasonable", he told reporters at a business lunch.

GM signed an initial agreement to buy two Korean factories from Daewoo plus its overseas operations for $400m in September.

However, Mr Henderson, said issues still to be settled in talks with Daewoo's creditors included which factories GM would take over, labour agreements, and claims against the bankrupt Korean car firm.

Daewoo Motor's labour unions have protested, sometimes violently, against the GM takeover.

For its part GM has resisted taking on some older plants and the Pupyong plant where the unions are based.

More recently, it has been rumoured that GM is being similarly selective about Daewoo's overseas units, and does not want to take on its Egyptian plant.

Daewoo Motors has shed hundreds of jobs in a bid to restore profitability.



Background
See also:

08 Jan 02 | Business
Daewoo cuts jobs to ease merger
24 Sep 01 | Business
Daewoo deal 'favours' GM
21 Sep 01 | Business
GM signs Daewoo deal
18 Sep 01 | Business
GM 'optimistic' on Daewoo deal
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