Korea's Daewoo Motor posts profit

SEOUL, Korea -- South Korea's bankrupt Daewoo Motor said on Monday it had posted its sixth straight month of operating profit in September, fueling hopes of pumping more assets to General Motors.

According to the Yonhap News Agency, Daewoo reported an operating profit of 14.9 billion won ($11.5 million), the biggest monthly profit this year.

General Motors (GM) confirmed last month it would take over four of Daewoo's auto plants.

Bearing results

"Our restructuring measures are bearing results and daily sales have surged 30 percent since the signing of an MOU with GM," Daewoo said in a statement.

The four plants include two of Daewoo's plants in South Korea at Kunsan and Changwon as well as plants in Vietnam and Egypt.

Daewoo said its main plant in Pupyong west of Seoul posted its third straight operating profit in September with 1.2 billion won.

The Pupyong plant, Daewoo's oldest and excluded from a possible purchase, has been a sticking point in negotiations, due to its militant labor union.

Last months' agreement has a provision for a potential future acquisition of the Pupyong plants by GM should it be found appropriate.

Until then, the plant will continue to supply the new company -- to be formed by the four plants -- with vehicles, engines, and parts.

GM expects to sign final agreements by the end of the year after due diligence.

Reuters contributed to this report.