29 June 2000

A committee representing creditors of the troubled South Korean car giant Daewoo Motors has selected Ford as the sole bidder. The decision follows a shootout with General Motors and Daimler Chrysler.

According to the committee, Ford won the day because of its "capabilities to improve Daewoo’s corporate value, willingness to transfer technology, provide job security, and contribute to the growth and development of the component industry".

Although no figures have been released, South Korean newspapers report that Ford submitted the highest bid of some six trillion Korean won ($5.37bn). The US carmaker will conduct about six weeks of due diligence, and the creditors committee hopes to conclude a contractual agreement shortly afterward.

Daewoo’s production capacity tops two million cars a year and the marque is a strong competitor in its domestic market, throughout Southeast Asia, and Eastern Europe. In the event that the deal founders during or after the due diligence process, the committee said it would reopen discussions with the two rejected suitors.

News source: BBC Online Business News (UK)