The South Korean unit of General Motors will continue to operate normally under a revamped New GM after the U.S. parent proceeds with its Chapter 11 bankruptcy protection, the top executive of GM Daewoo Auto & Technology said Tuesday.

GM, a once-mighty American auto giant that dominated the global auto industry for much of the 20th century, filed for bankruptcy protection in New York Monday, aiming to become a leaner, debt-free New GM.

GM Daewoo Chief Executive Officer Michael Grimaldi said the company's operations, including GM's new global mini and small car programs based in South Korea, are continuing as planned.

"Along with the launch of the New GM, GM Daewoo will play an important role in the new company's global business strategy," Grimaldi was quoted as saying in a statement.

"We will support the launch of the New GM and our parent's accelerated drive to reinvent itself into a stronger and more competitive company," he said.

In 2002, GM bought a majority stake in the then bankrupt Daewoo Motor Co. of South Korea.

Hit by the U.S. parent's troubles and the global economic slump, GM Daewoo has also been in dire financial straits.

Since early this year, GM Daewoo and the state-run Korea Development Bank have been in negotiations over the automaker's repeated call for 1 trillion won ($812.3 million) in emergency loans.

But the state-run bank and the South Korean government have rejected the plea, saying they will help the troubled firm only if GM gives a "clear assurance on the future of GM Daewoo."

The Korea Times 02-June-2009 11:20