The Daewoo Motor Co. factory in Warsaw, Poland, has just two years to find a new owner.
That's how long the new GM Daewoo Auto and Technology Co. is prepared to supply the plant with vehicles on a complete knockdown basis, said Alan Perriton, president of General Motors Korea and the executive in charge of negotiations to buy parts of Daewoo.
Perriton was interviewed at the Automotive News Asia Pacific Congress in Bangkok, Thailand.
GM didn't buy Daewoo's Polish plant because it doesn't need the capacity. GM already has an assembly plant in Gliwice, Poland. GM's alliance partner Fiat has another in Tichy, Poland.
Other Daewoo plants in India, Romania, Czech Republic, Uzbekistan, Ukraine, India, Libya, China and Egypt that GM didn't buy each will be supplied for three years.
Daewoo spent $1.1 billion (E1.2 billion) to renovate the factory in Warsaw. The plant has capacity for 400,000 vehicles a year. It is producing at a quarter of that rate.
The Warsaw plant was part of Daewoo's high-risk strategy to build assembly plants in some of the world's poorest regions. Warsaw produces the Daewoo Matiz, Nubira and Lanos, plus the Polonez, a car based on a 20-year-old Fiat.
The new GM company picked up Daewoo sales subsidiaries in Austria, the Benelux countries, France, Germany, Italy, Spain and Switzerland, plus Daewoo's European parts operations in the Netherlands. GM did not buy Daewoo's UK sales subsidiary, but will replace it with a new dealer network.