GM's SKorean arm holds talks with state-run bank

[Hurricane]

GM's SKorean arm holds talks with state-run bank
South Korean unit of General Motors holds talks with state-run bank
Thursday February 19, 2009, 9:16 am EST

SEOUL, South Korea (AP) -- The South Korean arm of General Motors said Thursday it held talks with a state-run bank over long-term financing, while a news report said it sought hundreds of million of dollars in aid.

GM Daewoo Auto & Technology Co. President Michael Grimaldi visited Korea Development Bank last week "to discuss cash-flow improvement for the long term," company spokesman Park Hae-ho said.

South Korea's Yonhap news agency, quoting a senior bank official, reported that GM Daewoo requested assistance of about 1 trillion won ($676.7 million).

Park said he could not confirm the report, saying the company does not disclose financial information externally. He emphasized, however, that the company did not lack funds in the short term.

A KDB spokesman confirmed that GM Daewoo had visited the bank, but added that no specific amount of aid was discussed.

GM Daewoo last week said it asked the South Korean government to provide funds to help develop new models. The Ministry of Knowledge Economy, South Korea's commerce ministry, turned down the request, according to the company.

South Korea's third-largest automaker has suffered falling sales amid the global downturn and has curtailed production. Sales fell 50.4 percent in January to 45,954 vehicles. Sales fell 8 percent in 2008 to 881,959 vehicles.

Unlisted GM Daewoo was created in 2002 after Detroit-based General Motors Corp. acquired Daewoo Motor Co., the automobile unit of the Daewoo Group. That conglomerate had collapsed as a result of the financial implosion that hit South Korea in 1997-98, part of the broader Asian economic crisis.

Full text here: http://finance.yahoo.com/news/GMs-SK...-14410980.html

[johnny smallblock]

I can't imagine GM DAT is in that much trouble. I think GM is looking to get money from every country they're in, and use pool it as best they can.