Future of GM Daewoo 'very bright,' outgoing chief says

By Kim Deok-hyun

BUSAN, Aug. 27 (Yonhap) -- The outgoing chief of GM Daewoo Auto & Technology Co., painted Thursday a rosy future for the South Korean unit of General Motors Corp., despite the company's liquidity crisis.

"GM Daewoo has a very bright future," Michael Grimaldi, the chief executive of GM
Daewoo who is retiring on Oct. 1, told reporters at a press conference. "I see
very encouraging signs (beginning) to appear."
GM Daewoo plans to unveil three new models by 2011, including a mid-size sedan
for next year, Grimaldi said.
"This move is another signal that GM Daewoo will play an important role under the
new GM," said Grimaldi, who has been in the post for three years. Mike Arcamone,
an executive of GM's manufacturing and global purchasing, will replace him.
GM Daewoo, the third-largest carmaker in South Korea, suffered a huge net loss
last year, hit by the financial woes of its U.S. parent.
While GM escaped from bankruptcy protection, the troubles at GM Daewoo remain
unresolved because the local affiliate can't receive financial support from the
U.S. government.
Since early this year, GM Daewoo has been in talks with South Korea's state-run
Korea Development Bank for one trillion won (US$800 million) in emergency loans
amid the tightening cash position that the company says "critical."
The talks have reportedly faltered on GM's refusal to offer part of its GM Daewoo
stake as collateral, as requested by the South Korean bank.
From next month, GM Daewoo will start selling the all-new version of its Spark
minicar in South Korea, the first step by GM to release it in more than 150
countries.
The Spark, which GM Daewoo officials say will hit U.S. showrooms in 2011,
highlighted GM's efforts to focus on small cars as the U.S. auto giant exited
bankruptcy protection after painful restructuring.
GM acquired GM Daewoo in 2002 from the then bankrupt Daewoo Motor Co.
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