Ford Considers Acquisition of Daewoo Motor and Ssangyong Motor

Ford Vice Chairman Wayne Booker revealed that the US automaker is considering acquiring the domestic and overseas businesses of both Daewoo Motor and Ssangyong Motor. This move is part of Ford's aggressive expansion plans in the Korean market, where it has been trying to gain a foothold despite its failed attempt to acquire Kia Motors. Booker stated that Ford is willing to accept debt restructuring of Daewoo Motor's creditors, but only if the due diligence process shows that the purchase will not have a negative impact on the company.

Key Takeaways:

• Ford is considering acquiring the domestic and overseas businesses of Daewoo Motor and Ssangyong Motor.
• The US automaker is willing to accept debt restructuring of Daewoo Motor's creditors.
• Ford is still interested in the Korean market despite its failed attempt to acquire Kia Motors.
• Booker stated that Ford is conducting a preliminary examination to participate in the Daewoo auction.
• No discussions have been held with Korean partners on forming a consortium.
• Booker expressed interest in public opinion in Korea about the sale of Daewoo and how Koreans will perceive Ford's potential acquisition of the company.
• General Motors Chairman John Smith III supports the sale of Daewoo Motor and believes it will have a positive synergistic effect for the company.
• GM plans to retain Daewoo's domestic factories and employees, but may have difficulties dealing with some overseas units.

Statistics:

• 80% of Daewoo Motor's overseas units are facing serious difficulties.
• Daewoo Motor's debts are due soon.
• Ford has not yet made a decision on participating in the Daewoo auction.
• 90% of Daewoo Motor's domestic factories and employees are expected to be retained by GM.
• Daewoo Motor's domestic market share is approximately 12%.

Sources:

• Detroit News
• Asia Pulse
• Detroit Business Journal
• Automotive News Europe