Bankrupt South Korean automaker Daewoo Motor said today it had returned to operating profit for the first quarter.
The unlisted car manufacturer, which General Motors (GM) agreed last week to revive posted 16 billion won ($12.54 million) in first-quarter EBIT (earnings before interest and taxes) versus a 46.4 billion won loss during the period a year earlier.
"We cut around one trillion won in costs after our staff shrank by 7,300 workers," Daewoo Motor spokesman Kim Jong-do said.
Sales fell to 954 billion won from 1.05 trillion won a year earlier, Daewoo said.
The GM-Daewoo joint venture will operate two plants in South Korea and one in Vietnam. It pair also agreed to assume eight sales units overseas, including seven in Europe and one in Puerto Rico, and one parts unit in The Netherlands.