SEOUL -- South Korea's Daewoo Motor Co. said on Wednesday General Motors was set to buy its engine joint venture in China, reinforcing the presence of the world's largest automaker in the world's fastest-growing market.
GM and partners took a majority stake in ailing Daewoo Motor last year for $251 million to create GM Daewoo Automotive and Technology Co.
"Price negotiation is under way for the China joint venture," said an executive at Daewoo Motor, which is in the process of liquidating its remaining assets. "It'll take some more time to narrow differences in price."
The Chinese unit, which was set up in 1999 with the Shandong government and Daewoo holding 50 percent each, is capable of producing 240,000 engines and transmissions respectively a year. Its paid-up capital stands at $228 million.
GM officials could not be reached for immediate comment.
In a separate development, the Korea Economic Daily reported GM and Ford Motor Co. were competing to buy Daewoo's plant in India, which is under local court receivership.
The Daewoo executive could not confirm the report.