Less than five years after it entered the U.S. market, South Korean automaker Daewoo could be
history here, according to a USA Today
story by Earle Eldridge.
General Motors, which is expected to buy parts of bankrupt Daewoo for $400 million, reportedly won't include Daewoo Motor America in a deal that could be announced as early as next week. GM officials refuse to say if Daewoo's U.S. arm will be part of the deal.
South Korean newspapers have reported that GM will take over 10 of Daewoo's 24 overseas operations -- but not the U.S. unit. If so, that would leave 170,000 Daewoo owners wondering
where to get their cars serviced and whether their factory-backed warranties are useless.
And about 525 Daewoo dealers, some who have spent more than $1 million buying and building stores, face losing their investments and trying
to sell their remaining cars, which few people will want to buy. About 6,000 Daewoo dealership employees and about 160 employees of Daewoo Motor America could be jobless.
GM officials say confidentiality agreements prevent them from commenting about the Daewoo deal. Their advice: "If you are a current
Daewoo owner, you need to talk to Daewoo," says GM spokesman Jerry Dubrowski.