According to Luis Quisumbing, president of Transfarm and of the Norkis Group of Companies, talks between Transfarm and Daewoo have resume on a more amicable basis after it had initially deteriorated to a legal battle.
In fact, Quisumbing told reporters of a possible settlement of Transfarm’s $20-million claim against Daewoo sometime this year.
Transfarm and Daewoo were partners in the assembly and sale of Daewoo cars from 1993 to 1997 or a period of four years.
Transfarm and Daewoo’s relationship turned sour due to the Norkis Group’s tie-up with Daimler-Chrysler for the assembly of Chrysler vehicles.
Daewoo claimed that its facilities will be used by Chrysler much to its disadvantage. Daewoo, thus, terminated its business relationship with Transfarm.
Quisumbing said the improvement in the talks between Transfarm and Daewoo is due to the bankruptcy of Daewoo in Korea.
Daewoo is now under receivership and all the former Daewoo officials Transfarm used to deal with have reportedly been changed, according to Quisumbing.
Transfarm and Daewoo, in fact, Quisumbing said, have agreed to drop all legal cases that they had filed against each other.
Doing so, he said, would eventually lead to a settlement.
However, Quisumbing said that whatever settlement is reached, it would still not cover the entire cost of Transfarm’s investment in the Daewoo plant, start-up, re-organization, marketing and legal expenses.
He, however, said that the former Daewoo plant will be retooled for its planned assembly of Chrysler vehicles.