Shanghai GM's parent companies, General Motors and Shanghai Automotive Industry Corp (SAIC), agreed with creditors of Daewoo Motor to merge the Shanghai JV with an engine plant left by the bankrupt South Korean company in Shandong province.
The engine plant is a US$940 million joint venture formed by Daewoo Motor and the Shandong provincial government in 1999 to produce 1.3-, 1.5- and 1.6-liter engines and transmissions in the city of Yantai. The venture shut down one year later as a result of Daewoo's bankruptcy. The merger follows Shanghai GM's 2002 purchase of a car plant in Yantai that assembled Daewoo's vehicles.
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