GM Increases Their Stake In Daewoo By 20 Percent

Miscellaneous | Dean | October 26, 2009 at 17:15

General Motors has increased their stake in Daewoo from 50.1 percent to 70.1 percent. The result of this increase saw the Korean Development Bank stake decrease from 28 to 17 percent.

“The successful completion of the equity rights issue significantly strengthens GM DAT’s liquidity and balance sheet position as we look to resume our strong growth,” said Mike Arcamone, GM DAT CEO in a statement quoted by just-auto.com. “We are grateful for the support and confidence of our major shareholder.”

“With today’s news, GM has underlined its commitment to GM DAT and to Chevrolet in Europe and around the world,” Wayne Brannon, Chevrolet Europe chief added. “Over the past seven years, GM DAT has become an integral part of General Motors’ global engineering, design and manufacturing network.”

“GM’s decision to increase its equity in GM DAT signifies the importance of our Korean business unit to GM’s global operations,” Nick Reilly, GM International Operations concluded. “GM DAT will continue to play a significant role in the success of the new GM’s global business.”