GM, Daewoo partnership ending
General Motors Corp. will sever its partnership with South Korea's Daewoo Group later this month after a yearlong dispute over management and sales, Daewoo officials said yesterday. Daewoo, the third-largest automaker in South Korea, has criticized GM's management conditions, while GM has been uneasy with frequent labor disputes.
Daewoo Motor Corp. builds the Pontiac LeMans subcompact, the only car it sells in the United States. Daewoo Motor also builds the Prince four-door sedan and commercial vehicles for sale in South Korea. GM and Daewoo formed Daewoo Motor in 1978. Each owned 50 percent of it.
Brazil, banks reach accord
Brazil and its creditor banks said yesterday that they have completed negotiations on a $44 billion debt deal. The announcement on the debt-reduction accord came in the form of a three-paragraph joint release by Brazilian Finance Minister Marcilio Marques Moreira and Citibank Vice Chairman William Rhodes during the International Monetary Fund World Bank annual meeting in Washington.
Pepsi cuts 2 management layers
Pepsi-Cola Co. removed two layers of management in a move announced yesterday to streamline its organizational structure. The company said that the reorganization would not lead to any layoffs. It said the change was designed to remove layers of supervision and make the headquarters staff more responsive to customers. Pepsi-Cola is a subsidiary of Pepsico Inc., which is based in Purchase, N.Y.
One result of the change is that David Novak, who was Pepsi-Cola's chief marketing executive, will move into an operating role. Jeff Campbell, senior vice president for brand development, will become the Pepsi-Cola executive with the most direct responsibility for marketing.
Judge denies Campeau motion
An Ontario bankruptcy court judge denied a motion yesterday by Canadian financier Robert Campeau to lift court protection of Olympia & York Developments Ltd. so Mr. Campeau could proceed with a $1 billion lawsuit.
The judge also temporarily blocked Mr. Campeau from proceeding with a related action against National Bank of Canada. The rulings mean that both actions are frozen at least until O&Y;'s bankruptcy court protection runs out Dec. 30.
Martin gets $50 million contract
Martin Marietta Corp. has received a contract for about $50 million from the U.S. Air Force to provide a new-generation sensor system for potential use on the F-22 Advanced Tactical Fighter, the company said yesterday.