SsangYong importer issues £10m writ against Daewoo
15/07/1998 in NEWS
Daewoo bought the firm earlier this year, paying $35.5 million for the rival Korean manufacturer and assuming half of its $1.88 billion debt to gain a controlling 51.98% share. UK importer SsangYong Motor Distributors claims Daewoo has turned its back on a five-year import and marketing deal for the Musso and smaller Korando which should have run until 2002.
It is claiming multi-million pound damages to cover lost profits for the remaining length of the contract and the cost of setting up the brand in the UK. The firm says Daewoo has failed to implement a written memorandum signed earlier this year which would have provided an 'amicable solution to the dispute'. Daewoo in the UK says it will 'vigorously contest' any action taken by SsangYong Motor Distributors.