South Korea's GM Daewoo to Boost Capacity

South Korea-based GM Daewoo will acquire the main plant of the former Daewoo Motor firm on Sept. 30 in a move to boost its capacity. The Pupyung plant, located in Inchon, west of Seoul, had been left out of the 2002 deal in which General Motors Corp. and partners took a majority stake in some of the assets of bankrupt Daewoo Motor.

Since the takeover the Pupyung plant has operating separately as Daewoo Incheon Motor Co. Ltd. GM Daewoo had previously announced it would acquire the plant when a number of conditions -- including reducing labor strife -- were met.

The acquisition is seen as part of GM Daewoo's efforts to broaden its product line into sedans and sport utility vehicles to compete with its bigger rivals Hyundai Motor and Kia Motors.