Seoul, South Korea-based Daewoo Motor said it would cut 6,500 of the 46,000 jobs at its overseas production and sales units by the end of the year. The company cut 10,000 jobs, 30 percent, of its domestic work force in 2000.
A company spokesman said the job cuts are part of a restructuring program designed to make Daewoo more attractive for a takeover by General Motors. Daewoo's domestic operations are under court receivership with an estimated debt of $15 billion.
In other company news, Daewoo Heavy Industries and Komatsu entered a two-year agreement for Daewoo to import Komatsu construction equipment into the South Korea market. During the first year, Daewoo will import four models of mini excavators and three models of large hydraulic excavators. The second phase includes the introduction of three models of wheel loaders, two models of large dump trucks, and one line of front shovels, vibratory rollers and mobile crushing equipment.
As part of the agreement, Daewoo will also supply Komatsu with component parts.