GM in talks with Romanian govt on investment

[SoCalCTS]

GM in talks with Romanian govt on investment

Last Update: 8:27 AM ET Oct. 6, 2005


Marketwatch.com story

BUCHAREST (MarketWatch) -- General Motors Corp. (GM) is discussing a potential investment in Romania with the government, a General Motors Europe spokesman told Dow Jones Newswires Thursday.

The spokesman, Marc Kempe, declined to elaborate on the nature of the investment.

The Romanian government said last month that it is trying to persuade U.S. auto makers General Motors and Ford Motor Co. (F) to open new production units in Romania or buy Daewoo Automobilia Romania, the local plant of South Korea's defunct Daewoo Motor Co.

The Romanian state owns 49% of Daewoo Automobile Romania and the government is in talks with creditors of bankrupt Daewoo Motor Co. to buy the remaining 51% stake to keep the plant running until a new owner can be found.

-Contact: 201-938-5400 Edited October 6, 2005 by SoCalCTS

[andy82471]

GM in talks with Romanian govt on investment

Last Update: 8:27 AM ET Oct. 6, 2005


Marketwatch.com story

BUCHAREST (MarketWatch) -- General Motors Corp. (GM) is discussing a potential investment in Romania with the government, a General Motors Europe spokesman told Dow Jones Newswires Thursday.

The spokesman, Marc Kempe, declined to elaborate on the nature of the investment.

The Romanian government said last month that it is trying to persuade U.S. auto makers General Motors and Ford Motor Co. (F) to open new production units in Romania or buy Daewoo Automobilia Romania, the local plant of South Korea's defunct Daewoo Motor Co.

The Romanian state owns 49% of Daewoo Automobile Romania and the government is in talks with creditors of bankrupt Daewoo Motor Co. to buy the remaining 51% stake to keep the plant running until a new owner can be found.

-Contact: 201-938-5400

[post="24756"]<{POST_SNAPBACK}>[/post]

MEMO TO GM : Don't do it. Unless you want to sell it later at a loss.

[SoCalCTS]

I think GM should buy the factory. It really needs to shift Opel production out of Germany and into a lower cost market.

[Guest gmrebirth]

Umm, excuse my harshness, but what the HELL is GM thinking? Of all the things infinitely more purposeful and productive that GM could be doing, they want to buy Daewoo Romania :blink: While they're at it, they should buy up any Yugo or Lada factories in the area :rolleyes:

[cmattson]

I'm with SoCal on this one: GM is looking at the global picture. Where can it put low-cost assembly points in place for it's world-wide brands. If it can pick up a halfway-modern factory on the cheap, staff it cheaply and export from the country cheaply, then GM will have itself a nice bargain.

[Clownzilla]

I'm with SoCal on this one:  GM is looking at the global picture.  Where can it put low-cost assembly points in place for it's world-wide brands.  If it can pick up a halfway-modern factory on the cheap, staff it cheaply and export from the country cheaply, then GM will have itself a nice bargain.

[post="24774"]<{POST_SNAPBACK}>[/post]

Well Said!

[thegriffon]

This is one of the plants the new GM Daewoo declined to take over earlier. It seems to be run better than some of the others and is still a major player in the Eastern European market, despite the lack of investment. Given the strong growth of Chevrolet in Europe and strong growth in exports from Korea GM may be looking at cheap European production sites. Daewoo Romania is not the only option. Ukrainian automotive distributor UkrAvto's manufacturing arm AvtoZAZ recently acquired FSO, which builds Daewoos in Poland and supplies key components to AvtoZAZ' Ukrainian subsidiary ZAZ (which also manufactures Opel and Mercedes models). The company is said to be lookin for an assembly contract from Chevrolet Europe to boost profitablity as FSO. If GM decides the capacity would be of benefit, it will come down to the price.