Industry analysts say Daewoo Motor provides a good opportunity for car firms to make inroads into the fast-growing Asian markets. DaimlerChrysler and South Korea's Hyundai Motor put in a joint bid, as did General Motors and Italy's Fiat. The joint bid by Hyundai and Daimler Chrysler faced strong opposition from Daewoo workers who set fire to Hyundai cars in a violent protest. Daewoo can make two million cars a year and is prized as a strong competitor in South Korea, Southeast Asia and Eastern Europe. Last July, Daewoo group creditors stepped in with emergency funds, when the car maker and its 11 sister companies ran into trouble.
Creditors are now in the process of dismantling South Korea's second-largest conglomerate.
The auction is part of Seoul's efforts to restructure the country's auto industry. In April, France's Renault became the first foreign car company to acquire a local car company, buying into Samsung Motors. VW Mexico strike ends Links to more Business stories are at the foot of the page.