Tuesday 2 June 2009

GM India: Excluded From Parent's Bankruptcy

The Indian unit of General Motors Corp. said Monday it isn't included in a Chapter 11 bankruptcy protection filed by its U.S. parent and will continue its operations normally.

GM India will proceed with plans to introduce three new cars this year, including a minicar, and has no intention of cutting staff or stopping its expansion plans, the automaker said in a statement.

"GM India operations are not included in the U.S. filing for Chapter 11. Consequently, all GM India dealers, warranty and customer support services will remain unaffected and continue to function as normal," General Motors India Pvt. Ltd. said in a statement.

GM India has invested more than 50 billion rupees ($1.07 billion) in the past 14 years to build two factories in the western states of Gujarat and Maharashtra.

The Gujarat factory has an annual capacity of 85,000 vehicles, while the Maharashtra plant, which started operations last September, can currently produce 140,000 vehicles a year.
GM India is also investing more than $200 million to launch its first car engine and transmission factory in early 2010.

"We will remain aggressive in all areas of our business and continue to introduce new and exciting products...in order to contribute to our own long-term viability and the bottom-line of our company as a whole," said Karl Slym, president and managing director of GM India. "Our product programs and other plans for the future remain on track."

Mr. Slym said there are no plans to reduce the more than 4,000 workforce at GM India's two factories and its engineering, research and design center in the southern city of Bangalore.
"We are not going anywhere and we are here to stay for the long term," he said.
GM India currently produces six cars and sport-utility vehicles of the Chevrolet range, including the Spark minicar and Optra sedan.

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