Daewoo removes stumbling block in its talks with GM

["Charles Brown" <CharlesB@xxxxxxxxxxxxxxxxxxxxx>]

Daewoo removes stumbling block in its talks with GM

http://www.detroitnews.com/2002/autosinsider/0204/10/b03-461238.htm

By Detroit News staff reports and wire services



   SEOUL, South Korea -- Daewoo Motor Co. agreed to guarantee the jobs of all its 13,000 workers after the sale of its assets to General Motors Corp. and plans to rehire 300 workers by the end of this year, removing a stumbling block in the talks.
   Management and the union reached the accord after 21 meetings since November.
   "Obviously, today's agreement will make it easier for Daewoo Motor creditors and GM to sign a final agreement," Daewoo Motor spokeswoman Park Hae Yeung said.
   GM and Daewoo Motor's major creditors are in the final stages of talks, said Rhee Sung Kun, a director at main creditor Korea Development Bank.
   Korea Development Bank Governor Jung Keun Yong plans to meet with reporters today to describe the state of talks with GM.
   The U.S. automaker agreed in an initial accord in September to invest about $2.6 billion with Korean creditors to revive Daewoo Motor, formerly Korea's second-biggest automaker. The Detroit-based company, which began its takeover bid three years ago, wants to use Daewoo as an export base in Asia and to increase sales in the region's second-largest car market.

Toyota's Indonesian partner discusses selling its stake
   Jakarta, April 10 (Bloomberg) -- PT Astra International, Indonesia's largest automaker, is in talks with Toyota Motor Corp. to sell its stake in a production and distribution venture with the world's No. 3 carmaker as it seeks to repay debt.
   Astra, which owns 55 percent of Toyota Astra Motor, wants to retain distribution and exit the production business, said Astra spokesman Aminuddin. The Indonesian company had denied such a plan in February.
   "Now we are more focused on trying to sell Toyota Astra Motor as part of our efforts to help repay debt," rather than sell other assets such as palm oil plantations, Aminuddin said in an interview.
   Toyota, which owns the remaining 45 percent of the joint venture, would benefit from direct control over production because of changes in trading rules in the Association of Southeast Asian Nations, of which Indonesia is a member.
   Companies located in the region will be able to start taking advantage of lower tariffs under new free-trade rules among member countries from this year.

DCX unloading parts firm stake
   FRANKFURT, Germany -- German-American auto maker DaimlerChrysler said Tuesday it will sell its remaining stake in electronic parts maker Conti Temic to Germany's largest tire maker, Continental.
   DaimlerChrysler exercised an option to sell the 40 percent stake effective April 1, and the transaction will be completed when the $190 million payment is made the next few days, DaimlerChrysler and Continental said in prepared statements.
   Seeking to raise cash and focus on its main manufacturing operations, DaimlerChrysler sold a 60 percent stake in what was formerly TEMIC Telefunken $350 million in April 2001. Conti Temic, based in Nuremberg, makes electronic components including seat motors and control mechanisms for retractable hardtops.
   Hanover-based Continental's other divisions make tires and a wide range of auto components, including brakes, power transmissions, and engine mounts. Continental said that the acquisition gives it the in-house electronics capability to link various components.