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GM Daewoo to take over Powertrain

GM Daewoo Auto & Technology Co. said yesterday it finalized a deal to take over the assets and liabilities of Daewoo Powertrain for 50.1 billion won ($43 million).
Located in Boryeong, South Chungcheong Province, the plant manufactures transmissions for passenger cars, has an annual production capacity of 400,000 units and employs about 400 people.

GM Daewoo, a Korean unit of General Motors Corp., the world's biggest automaker, said it plans to invest nearly 420 billion won in the facility to develop and produce new environmentally friendly passenger car transmissions.

The investment includes product development, machinery, new equipment, employee training and facility upgrades.

GM Daewoo signed a deal with Daewoo Telecom and Woori Bank to purchase assets and liabilities of the telecommunication equipment maker's transmission-making unit on October 13 last year. Woori is the main creditor of debt-laden Daewoo Telecom and has been selling the company's assets.

"The acquisition guarantees GM Daewoo a steady source of high-quality, durable, Korean-made transmissions," Nick Reilly, president and chief executive of the Korean carmaker, said in a statement.

"It will take the lead in manufacturing GM Daewoo's next-generation automatic transmissions jointly developed by GM Daewoo and GM Powertrain in North America."

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