Arnold Clark has been given control of two Daewoo territories in Scotland as the carmaker appoints its first UK franchised retailers.

The £795m turnover Arnold Clark, No5 in the AM100, takes on the existing Daewoo centre in Glasgow, including employees. It will open a second Daewoo outlet in Dundee next month, and is likely to be given additional Scottish territories.

Mr Clark said: "We looked at Daewoo some time ago and thought it was both modern and unique in its development of the essential customer care process."

Daewoo Cars has encouraged dealers to acquire its former retail outlets and employ existing staff.

In Bristol, Skoda dealer Roadworthy will take on the Daewoo centre and workforce, while Millennium Motor Group will represent the carmaker in Nottingham.

S K Kim, Daewoo Cars managing director, said there had been "enormous interest" from dealers.

"I am confident we shall meet our objectives for our revised sales strategy, while ensuring that we encourage applicants to take over our existing outlets," he said. "Our sales approach and people remain our greatest assets."

Daewoo hopes to appoint 150 dealers - a mixture of existing centres and new outlets - within two years.

General Motors is poised to announce the acquisition of Daewoo Motors in Korea after a year of negotiations. A Daewoo spokesman said: "We are confident that recent discussions regarding Daewoo Motor in Korea and their agreement with GM will reach a positive outcome within the next few weeks."

The deal is thought to exclude the Pupyong assembly plant - the final obstacle preventing the purchase. The state-run Korean Development Bank is one option for funding the plant's future.

Daewoo Motor has continued developing new models during the protracted negotiations. An all-new B-sector car is due to go on UK sale in September 2002, helping the new dealer network to increase volume and market share, said the carmaker.