Seoul, Korea - Fiat S.p.A.and General Motors Corporation today submitted a joint proposal to participate in the proposed sale of the automobile and automobile related businesses of Daewoo Motor Co. Ltd.

The proposal includes the creation of a newly formed company that will own and operate all of the Korean based assets of Daewoo Motor and Ssangyong Motor Co. Ltd. as well as the majority of their international operations.

While the equity arrangement of the new company is yet to be finalised, GM will be the largest shareholder, Fiat S.p.A. will own up to 20 percent and the balance will be divided among the creditors and the other constituents of Daewoo.

According to John F. Smith, Jr., Chairman of General Motors,"This agreement provides the absolute best possibility for Daewoo. Everyone agrees that the true benefit of this arrangement to Daewoo, the Korean automotive industry, the Korean supplier base and the overall Korean economy will be the significant global synergies that are possible among General Motors, Fiat and Daewoo."

G. Richard Wagoner, Jr., CEO and President of General Motors, added that "Our business plan will give Daewoo the best opportunity for rapid normalization, while preserving the identity of Daewoo Motors, its product brand, and its ability to play its role as a global stand alone competitor. It ensures its long-term viability and puts Daewoo into an industry leading position poised for rapid growth both domestically and internationally. In addition, the joint bid will provide opportunities to widen the scope for synergies in areas such as powertrain and purchasing. These synergies will be of direct benefit to Daewoo as well." According to Paolo Fresco, Chairman of Fiat S.p.A., "The combined Fiat-GM proposal will dramatically enhance the globalization process of Daewoo and its suppliers. This is a global partnership for a global enterprise."

Paolo Cantarella, CEO of Fiat S.p.A., added that: "By leveraging the world leading resources of General Motors and Fiat with those of Daewoo, Daewoo will have unrivalled development opportunities that will also greatly benefit the Fiat-GM joint ventures in powertrain and purchasing. The combined proposal includes the establishment of a Korean-based Asia-Pacific Design, Research and Development Center, a comprehensive plan for the development of the local supplier base, employment assurances, and e-commerce business opportunities." Autoworld.com

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