Daewoo could use an injection of cash, technology and help with its stalled U.S. market entry.
The proposed swap between Daewoo and Samsung emerged at the time the Pusan line shut down.
Daewoo's Matiz and the yet-to-be-formally-named Tata Small Car (TSC) will roll out soon after.
The Daewoo brand was tarnished in the years leading up to its bankruptcy three years ago.
Hyundai and other conglomerates have managed to stall for time--Daewoo's debts were too big.
"Even I recommended that he play, " says Daewoo Motors Chairman Kim Tae Gou (no relation).
He also bought Daewoo trucks, after the stricken South Korean chaebol had to be broken up.
He has tied up with Korean giants Daewoo to make color TVs and Hyundai for escalators.
Korea has better franchises, like Samsung and Daewoo, which will make raising money easier.
When Daewoo collapsed nearly three years ago, bondholders were compensated at almost full face value.
Losses are likely to grow bigger when debt-restructuring schemes covering 12 Daewoo companies are finalised.
The state should have dealt with them more radically when Daewoo collapsed, says Mr Jang.
Already heavily indebted at the start of the crisis, Daewoo has kept borrowing at a frantic pace.
Daewoo's dollar-denominated bonds are now worth less than half of their face value, according to the firm.
Australian producer Woodside recently agreed to partner with Daewoo in further exploration in the Bay of Bengal.
FORBES: Myanmar's Ethnic Conflict Flares In Shadow Of Asian Oil Investments
Daewoo's financial trouble came to a head only last month, but its failure was a long time coming.
Last week, the government lost patience, telling creditor banks to take the wrecking ball to the Daewoo group.
Under pressure to meet these restrictions, the banks would have limited Daewoo's ability to take on new debt.
Nor is GM "next in line": It announced on Sept. 4 that it is no longer pursuing Daewoo.
"Korea is going to surprise the world, " enthuses Lee, president of the Daewoo Economic Research Institute in Seoul.
Hyundai is one of two chaebol - the other is Daewoo - tottering under a massive debt load.
Alarmed by the default of the Daewoo group, investors are shifting money from investment trusts into bank deposits.
Soon GM injected Daewoo with grander ambitions, as a base for exports throughout Asia, especially the booming Chinese market.
Hyundai and Daewoo are the only top chaebol that are still run by the mercurial tycoons who founded them.
Creditors want to merge Ssangyong Motors, which Daewoo acquired last year, with Daewoo Motor as part of the deal.
The mid-size sedans are also hurting - the Cielo has reportedly seen sales drop 40% despite Daewoo's price cut.
Good thing, because it turned out Daewoo was in a heap of trouble.
Samsung, Daewoo and Ssangyong all went big into auto manufacturing and failed big.
This explains why GM grabbed a chunk of Fiat and is eyeing Daewoo.
Daewoo, the Korean unit of General Motors, may offer Proton an engineering collaboration.
应用推荐