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GM Indian unit confident of project funding

GM Indian unit confident of project funding
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First Published: Sat, Jun 06 2009. 12 47 AM IST
Updated: Sat, Jun 06 2009. 12 47 AM IST
New Delhi: The Indian unit of bankrupt General Motors Corp does not see any concern in funding the powertrain plant it is building even though financing had not been finalised, a top executive said on Friday.
General Motors has invested more than $1 billion in production facilities India. Earlier this week, its Asia Pacific President said most of the $200 million needed to complete a new engine factory and other projects was yet to be raised.
Karl Slym, president and managing director of GM India, said the powertrain plant was due for completion at the end of 2010 and he saw no issues in raising funds for it.
“Our finance will be employed during the period of construction, no issues,” he told reporters at an event to launch a new version of their Chevrolet Spark.
“It’s not an unusual situation... As far as funding is concerned, there is no difference in where we are today and where we were when we started investing a billion dollars,” he said.
Slym said GM India could tap internal accruals, use its agreements with financial institutions and, if needed, would seek help from other GM companies.
As part of the 100-year-old automaker’s historic bankruptcy filed on Monday, the US government is set to own 60 percent of a new and leaner GM. Company executives have said that lower-cost Asia-Pacific operations would be a crucial driver for the “New GM”.
“It’s business as usual for us in India,” Slym said, adding GM’s new model launches in India were on track and they would continue to add service outlets in the country.
GM plans to launch a new mini car at the end of 2009, will price it at around Rs400,000 ($8,500) in India, said Ankush Arora, a vice president with the Indian unit.
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First Published: Sat, Jun 06 2009. 12 47 AM IST
More Topics: GM | Automakers | India | Funding | US |