Honda to End Technical Agreement with Daewoo

01/02/97

Nikkei English News reports that Honda Motor Company will dissolve its technical tie-up with Daewoo Motor Company. The tie-up originally provided a way for Honda to transfer the technology used to build the Legend sedan to Daewoo. Honda initiated the technology transfer in 1993, but decided to discontinue the practice when it remodeled the Legend in February. Daewoo has begun a development program of its own and plans to begin making small and midsize cars of its own design by 2000.

Daewoo had asked Honda to extend the technology transfer agreement to include technology for making the Accord, but the two firms were unable to agree on pricing levels for parts.

Paul Dever -- The Auto Channel