SEOUL - GM DAEWOO, the South Korean unit of General Motors, said on Thursday it had asked Seoul to provide support including financial help as the global auto industry grapples with its worst downturn in decades.
Michael Grimaldi, president and chief executive officer of GM Daewoo met, late on Wednesday, Lee Youn Ho, South Korea's Knowledge and Economy Minister, who is in charge of the country's auto sector, a GM Daewoo spokesman said.
'The president told the minister that liquidity support in the longer term would help the company's management, although we do not need that imminently,' Hwang Nam Chul, a company spokesman said by telephone, adding Mr Grimaldi also talked about the crisis confronting the auto sector due to the global economic recession.
Ministry officials were not available to comment about the request for help, but local media said the government had rejected it and did not have a plan to support the country's No. 3 automaker yet.
GM must clearly explain plans on GM Daewoo in the group's restructuring process and GM Daewoo's own efforts to deal with the industry downturn before asking for the government's help, Yonhap News Agency quoted the ministry as saying.
That came after the US government decided to inject US$17.4 billion (S$26.2 billion) to shore up Detroit's Big Three automakers including GM.
Other governments such as Canada have decided to provide financial support to GM.
A sudden collapse in consumer demand last year and turmoil in credit markets have dampened global automakers, forcing them to cut production and shed jobs, adding to the global economic gloom.
Authorities around the globe have taken various steps to minimise the impact of the downturn on their job markets and economies.
In South Korea, a court last week accepted a filing for court receivership from cash-strapped SUV maker Ssangyong Motor to avoid a bankruptcy. -- REUTERS
Michael Grimaldi, president and chief executive officer of GM Daewoo met, late on Wednesday, Lee Youn Ho, South Korea's Knowledge and Economy Minister, who is in charge of the country's auto sector, a GM Daewoo spokesman said.
'The president told the minister that liquidity support in the longer term would help the company's management, although we do not need that imminently,' Hwang Nam Chul, a company spokesman said by telephone, adding Mr Grimaldi also talked about the crisis confronting the auto sector due to the global economic recession.
Ministry officials were not available to comment about the request for help, but local media said the government had rejected it and did not have a plan to support the country's No. 3 automaker yet.
GM must clearly explain plans on GM Daewoo in the group's restructuring process and GM Daewoo's own efforts to deal with the industry downturn before asking for the government's help, Yonhap News Agency quoted the ministry as saying.
That came after the US government decided to inject US$17.4 billion (S$26.2 billion) to shore up Detroit's Big Three automakers including GM.
Other governments such as Canada have decided to provide financial support to GM.
A sudden collapse in consumer demand last year and turmoil in credit markets have dampened global automakers, forcing them to cut production and shed jobs, adding to the global economic gloom.
Authorities around the globe have taken various steps to minimise the impact of the downturn on their job markets and economies.
In South Korea, a court last week accepted a filing for court receivership from cash-strapped SUV maker Ssangyong Motor to avoid a bankruptcy. -- REUTERS
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