Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Mint-lounge / General meltdown?
BackBack

General meltdown?

General meltdown?

Premium


A structured bankruptcy could well be the only future for America’s biggest and once brightest symbol of manufacturing prowess. But what does that really mean for you and me?

This will mean the new GM that emerges from bankruptcy will be leaner and meaner, with profitable cars that attract consumers who want efficient, compact vehicles. And it will be a company that can take on Toyota much better. So how does that help us in India? Well, the bits that get to stay include brands such as Chevrolet, the Korean operation (which supports most models in India today), and most of the subsidiary businesses in emerging markets.

As an independent entity, General Motors India has actually been doing pretty well of late. Including the recent infusion from its parent last year, GM’s total investment in India is close to Rs5,000 crore. This includes a newly added plant in Talegaon, Pune, and a new engine plant that will start production in a few months and will make the Indian operation virtually self-sufficient.

A brand new life: Chevy’s Beat is the Spark’s new avatar.

Also Read Road Runner’s Previous Columns

Besides the new Captiva LTZ, Chevrolet’s got an action-packed year lined up—welcome in a dull market. There is the all-new Spark, which I told you about in my Geneva report last month, that will debut here as the Beat by the end of the year in the Hyundai i10’s price bracket (Rs4-5 lakh). Before that, we will get the Cruze sedan that will be positioned above the Optra, at about Rs12 lakh, to take on the popular Honda Civic. The Cruze will have the same 2-litre diesel engine that services the Captiva/Optra Magnum and will most likely include an automatic variant.

Should you then part with your hard-earned money on a gamble called General Motors? Well, the decision is yours, and no, I am neither backing GM nor offering you a guarantee. But with so much going for it, it would take a huge strategic mistake for the Indian business to go off track, or be affected by the impending bankruptcy, if that happens. And those of you who already own a Chevy or even an Opel, breathe easier.

Siddharth Vinayak Patankar is editor, auto, NDTV. Write to us at roadrunner@livemint.com

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 14 Apr 2009, 08:48 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App