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Daewoo retailers put aftersales business on hold

Daewoo Cars' wholly-owned dealerships have stopped accepting aftersales business in the run up to the new distribution operation which will be set up by parent company Daewoo Motor's new owner General Motors.

Under the agreement GM will create GM DAT UK which will replace Daewoo Cars after a two to three-week period of administration.

GM DAT UK, which will begin trading as soon as the acquisition is completed later this month, plans to establish its own franchised dealer network. This might include some of the retailers recently appointed by Daewoo but it won't include any of Daewoo's wholly-owned outlets.

Meanwhile AM readers say Daewoo car owners are finding it difficult to source aftersales.

“In the lead up to the takeover of the business, there will be an interruption in our wholly-owned outlets' ability to offer aftersales services, probably for two to three weeks,” says a spokesman for Daewoo Cars. “But our franchised dealers will still be offering a service.”

GM DAT is expected to take on some of the 120 Daewoo staff employed at the Rickmansworth head office in Hertfordshire, but many are likely to be made redundant. Daewoo Cars began to run down support centre operations at Halfords stores in October, 2001, signalling the end of a partnership which began in 1995.

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