Daewoo Motor SA has assured local owners that the parent company’s recent acquisition by General Motors will not disrupt existing services or maintenance contracts, but the position of Daewoo Motor America appears to be completely different.

Daewoo Motor SA has assured local owners that the parent company’s recent acquisition by General Motors will not disrupt existing services or maintenance contracts, but the position of Daewoo Motor America appears to be completely different.

Several Daewoo Motor dealers in the US say that they are not able to get parts to repair customers' vehicles, reported. Daewoo Motor’s US sales unit was excluded from assets General Motors and other investors agreed to buy.

The affected dealers are trying to set up an Internet exchange to trade parts among themselves to meet warranty obligations and make repairs, said Breck Sloan, who owns two Daewoo dealerships in Florida. The bankrupt South Korean automaker has 525 US dealers and about 160 000 to 170 000 vehicles on the nation's roads.

"There are no parts at the depots from Daewoo," Sloan told . "Even if you sent a cheque with your order, their warehouses are empty."

General Motors and unnamed partners last week agreed to buy some Daewoo Motor assets for R12,17 billion in cash and assumed debt. GM said Daewoo's US customer warranties would be honoured, but that the guarantee would not take effect until the acquisition was completed in July.

Until then, service and repairs are the responsibility of Compton, California-based Daewoo Motor America, General Motors said. The US unit last month fired about two-thirds of its staff and executives at Daewoo Motor America have said they expect to be forced into bankruptcy.

Daewoo's US dealers expect to be out of business and have said there probably won't be Daewoo cars to sell in the US, the report added. The dealers are trying to sell the vehicles still in stock and repair vehicles in their shops - as best they can.

However, as CARtoday.com reported last week, the local implications of the General Motors deal are that Daewoo Motor South Africa is to remain under the auspices of the old Daewoo Motor Company in the interim.

“We wish to assure our present and future customers in Southern Africa that during the finalisation of the GM acquisition the manufacturer’s warranty and after-sales service will continue to be provided through the current Daewoo Dealer Network. Replacement parts for your Daewoo will also continue to be available,” a statement from the local company read.

“All Daewoo owners are to service and effect warranty claims through the national dealership network and appointed service agents as in the past, until further notice.

"DMSA requests that Daewoo owners adhere to the terms of the Daewoo Motor Warranty Policy of servicing through authorised Daewoo service agents to maintain the specified warranty agreement.”

Original article from Car