Tuesday, January 23, 2007

Who Will buy Daewoo Automobile?

These are not good days for Daewoo Automobile in Romania. The company is struggling to keep its existence. A lot of jobs are at stake. Now, a number of companies are interested to buy the company. GM and Ford both are seriously contemplating on the idea of buying Daewoo Automobile in Romania.

MSN reported:

General Motors and Ford Motor, as well as Chery of China and Tata of India, have submitted letters of intent to buy Romania's troubled Daewoo Automobile, which the country bought back from the bankrupt Korean group last year.

Romania's privatisation authority hopes to select a buyer by June.

Teodor Atanasiu, head of Romania's privatisation Avas, said the buyer would have to guarantee a minimum annual output of 300,000 units. The plant, located in Craiova, about 200km west of Bucharest, employs 4,000 people and has capacity to build 200,000 cars and 300,000 engines a year.

Let us hope for the best. The last thing that Romanian economy needs at this point of time is job losses of so many auto workers.