"GM May Have Landed a Dandy Daewoo Deal"

Business Week, October 8, 2001

Synopsis:
The closing case of Chapter 14 explains the dissolution of the strategic alliance between General Motors (GM) and Daewoo Motor Company in the early 1990s. This article discusses GM's recent decision to buy control of Daewoo through a joint venture with at least one of GM's Japanese partners. In many aspects, it seems to be a good deal for GM. First of all, GM was able to strike a hard bargain because it was the only bidder as Ford Motor Co. had decided to be out of a deal for Daewoo last year. GM may also be able to effectively deal with Daewoo's unions due to its decision to arrange the workers at Daewoo's oldest plant keep their jobs. Furthermore, Daewoo's small-vehicle expertise is expected to help GM develop small cars for emerging markets.

Full-text Article: http://www.businessweek.com:/print/magazine/content/01_41/b3752090.htm?mainwindow

Case connection:
"Anatomy of a Failed Alliance - General Motors and Daewoo" in Chapter 14 (pp.450-452).