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Former Daewoo dealers sue GM over imports

LOS ANGELES, July 24 (Reuters) - An association representing former U.S. dealers of Korea's Daewoo cars has filed suit against General Motors Corp. and Suzuki Motor Corp. , seeking to stop GM's Korean affiliate from selling cars in the United States.

In a lawsuit filed Tuesday in bankruptcy court in Los Angeles, Daewoo Motor America Inc., the dealers' group, said it claimed that GM forced DMA's parent, Daewoo Motor Co. Ltd., to breach its distribution agreement with DMA and cut off DMA's supply of cars, forcing it into bankruptcy in May 2002.

A spokesman for GM was not immediately available for comment on the suit. Suzuki representatives also could not immediately comment.

DMA is currently trying to win court approval for a reorganization plan that would allow it to emerge from bankruptcy as the U.S. parts distributor and warranty administrator for cars sold here under the Daewoo brand.

Earlier this month GM Daewoo Automotive & Technology Co., formed by GM and some partners in 2002 with a majority stake in some assets of the old Daewoo Motor, began exporting cars to the U.S. market. Those cars are being sold in the U.S. under the Chevrolet and Suzuki brands.

"These and other forthcoming Daewoo models were originally to be distributed under the Daewoo brand in the U.S. through DMA and its independent network of 500 dealers," the DMA's attorneys, the law firm of Sheppard, Mullin, Richter & Hampton, said in a statement.

The attorneys said they are seeking a court order to block GM and its affiliates from importing, advertising or selling the cars pending a trial.