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GM looks at taking over third Korean car plant

GM Daewoo Auto & Technology (DAT) senior executives have indicated General Motors might be prepared to acquire the assets at the company's huge Bupyong plant in South Korea should “certain conditions” be met.

Bupyong was not part of the deal agreed earlier this year by GM and Daewoo's creditors when they purchased the business. Only two Korean plants - Changwon and Kunsan - and one in Vietnam were included.

“Bupyong will continue to supply cars in the near future and could become part of the company if it meets certain conditions,” says Hardy Spranger, executive in charge of the GM DAT transition team.

He would not go into details about the conditions necessary for GM to purchase Pupyong, though the company is likely to want to see improved efficiency, downsizing and tighter control over employees to avoid a repeat of militant action that hit the plant during the takeover talks. Creditors are running the facility under a six-year agreement.

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