Suzuki and General Motors Will Oversee Rehabilitation of Daewoo Motor Co.

TOKYO AP reported that Japanese automaker Suzuki Motor Corp.said Thursday it will invest with its U.S. partner General Motors Corp. in a new company that will oversee the rehabilitation of South Korea's Daewoo Motor Co.

GM and its global partners plan to invest about $400 million for a 67 percent stake in the new company. Suzuki said it will chip in 14.9 percent, or $89 million.

Cars made by the new company will be sold by GM and Suzuki worldwide. GM, Suzuki and the new company will also develop products together, it said.

The GM-Daewoo deal, signed in April, underlines the efforts by the world's largest automaker to gain a foothold in Asia.

GM said it is taking a 42.1 percent stake in the new company, which will take over some of Daewoo's assets.

GM, based in Detroit, owns about 20 percent of Suzuki. It has stakes in two other Japanese automakers, owning 49 percent of Isuzu Motors and 20 percent of Fuji Heavy Industries, the maker of Subaru cars.