LONDON - Daewoo and General Motors could reach a tentative agreement to form an alliance by the end of June, said Daewoo Group Chairman Kim Woo-Choong.
The companies have discussed plans for GM to produce cars for Daewoo in South America and Thailand, and for Daewoo to build cars for GM in Ukraine.
Kim and GM International Vice President Lou Hughes are the main negotiators in the talks.
The big unresolved issue is how big a stake GM would buy in Daewoo, said Kim. 'We are looking for markets with more than 20 million people for future growth and manufacturing bases,' he said. 'A partnership with GM could help us get into those markets.'
Daewoo was set up in 1978 as a 50-50 joint venture between GM and Daewoo Group. GM sold out in 1992 because of Daewoo's desire to expand into new markets and to have greater independence.
Kim said he does not favor GM taking more than 50 percent of Daewoo, at least not for five years.
'We have learned from past experiences,' he said.
The two companies did not sever all ties after 1992. GM remains Daewoo's largest supplier, and they have several parts-making joint ventures.
In February, they agreed that Daewoo service centers in 10 major South Korean cities will service GM vehicles.