GM considering Naza Group and Cergazam Sdn Bhd as a replacement for DRB.Read the full news reporting by Liau Y-Sing and editing by Dhara Ranasinghe from Reuters below.
GM MAY END PARTNERRSHIP WITH MALAYSIA’S DRB
General Motors Corp may end its partnership with Malaysian car distributor DRB-Hicom Bhd due to funding and equity issues, a Malaysian newspaper said on Monday.
The companies have set a deadline to resolve issues by the end of the month but GM is considering Malaysian automotive dealers Naza Group and Cergazam Sdn Bhd as possible replacements for DRB, The Malaysian Reserve said citing unnamed sources.
GM and DRB set up a joint-venture in August 2007 to sell Chevrolet vehicles in the Southeast Asian country, the paper said.
GM has a 51 percent stake in the venture through GM Asia Pacific Holdings and DRB holds the rest. The report said DRB may be reluctant to inject more funds into the venture without having more say in its operations.
DRB was not immediately available for comment.
GM emerged from bankruptcy protection on Friday after closing a deal that sold key operations to a new company majority-owned by the U.S. Treasury.