GM Repays Korean Debt

With the initial public offering going great, American manufacturer GM is slowly coming back to its financial independence. Today, GM announced that it has managed to repay, together with its South Korean subsidiary GM Daewoo Auto & Technology, the entire $1 billion revolving credit facility.

Following our successful IPO, we will continue to take opportunities to strengthen our balance sheet. Our objective remains to have minimal debt and a fully funded pension plan,” said Chris Liddell, GM's Chief Financial Officer.

The money will be paid back to the Korea Development Bank by December 8. The money were needed by GM Daewoo to get out of the trouble in which the financial crisis of last year had thrown it into.

"This action reflects GM Daewoo's strong financial performance this year enabling us to make full payment," added GM Daewoo's CEO Mike Arcamone.

The South Korean manufacturer was acquired by GM in 2002, following the Asian's company's demise in 1998. Currently, the American manufacturer holds 70.1 percent of the company, with the Korea Development Bank being the second largest shareholder (17 percent).

Separately, GM Daewoo announced it plans to develop two small cars for the European market, which are planned to be launched in 2013. GM Daewoo says the new small cars will be different than the Chevrolet Aveo, being more in the class of Opel's Corsa.

GM Daewoo is at the center of Chevrolet's European strategy, as it plans to sell in Europe mostly cars supplied by the Koreans. According to, 98 percent of its cars will come from GM Daewoo.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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