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19

Daewoo Motor America Announced Bankruptcy

Daewoo Motor America has deckared bankruptcy...

The American sale division of the South Korean company Daewoo Motor has declared bankruptcy.

The action takes place only three and a half years after the company started trading in the country. Daewoo Motor America was excluded from the list of got property at the moment of signing the agreement between General Motors and creditors of the Korean autobuilder in April, 2002.

As a result of the bargain, estimated for $400 million the new company was created.

In April 2002 the American Daewoo has fired 105 of 165 employees. 60 staying workers should be responsible for warranty service of the Korean automobiles up to the moment GM should buy actives of the head company.

After this GM and Daewoo Motors will create the new company to provide warranty service of 170 thousand Daewoo automobiles for the American market.

Among the main reasons of the bankruptcy decision the representatives of the American autogiant have named poor popularity of the Korean brend among USA consumers.