US parent bankrupt, but GM India plans new car
June 3rd, 2009 - 7:17 pm ICT by IANSNew Delhi, June 3 (IANS) US auto behemoth General Motors Corp may have filed for bankruptcy protection, but its Indian arm is all set for the launch of a new variant of its popular small car Spark.
General Motors India, which operates out of Halol in Gujarat and has a second plant in Talegaon in Maharashtra, will unveil the new model Friday.
GM Corp filed for Chapter 11 bankruptcy protection Monday after a government bailout of $19.4 billion failed to resurrect the 100-year-old auto giant choking under a debt of over $37 billion.
The Chapter 11 process is expected to free the automaker of non-performing assets and liabilities and help it go for restructuring.
The automaker has also agreed to sell off its Hummer sports utility vehicle (SUV) business to China’s Sichuan Tengzhong Heavy Industrial Machinery Co.
However, making slight of what’s happening in the US, the Indian subsidiary remains upbeat with the automaker launching a new Spark model this week.
Moreover, it is also drawing up plans to develop a new Rs.2-lakh small car - its cheapest globally - which will be placed a rung below the Spark.
According to reports, the company plans to make India the lead market for the R&D of the new car, which could also be marketed in South America, Eastern Europe and Africa.
High riding fuel prices in the first half of 2008 crippled demand for the large SUV range that GM had built in the US with considerable investment; it is also one of the biggest reasons for its crash.
The company has already started the process of closing down 14 under-performing plants and other facilities and putting three more on stand-by.
GM is expected to cut 20,000 jobs during this process.
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- GM to close down Hummer as its sale to Chinese firm fails - Feb 25, 2010
- India plans on track: GM MD - Jun 05, 2009
- General Motors agrees to sell Hummer to Chinese company - Oct 10, 2009
- General Motors to launch small car Sail in Q3 - Mar 26, 2012
- GM sells Hummer - Jun 02, 2009
- GM has found buyer for Hummer: Report - Jun 02, 2009
- GM sells Hummer to Sichuan Tengzhong Heavy Industrial Machinery - Oct 10, 2009
- GM India remains unaffected by parents' bankruptcy petition - Jun 01, 2009
- GM to launch 6 new cars in India - Mar 04, 2011
- Sichuan Tengzhong buys GMs Hummer business - Jun 03, 2009
- GM India to launch six new models in two years - Feb 12, 2011
- GM to wind-down operations of Hummer after sale fails - Feb 25, 2010
- Detroit Auto Show 2010 Showcases A Plethora Of New Cars - Jan 12, 2010
- GM to recall over 160,000 Hummers - May 06, 2010
Tags: assets and liabilities, automaker, bailout, chapter 11 bankruptcy, chapter 11 bankruptcy protection, general motors corp, gm corp, halol, heavy industrial machinery, indian arm, indian subsidiary, industrial machinery co, lead market, motors india, new spark, non performing assets, small car, spark model, sports utility vehicle, talegaon