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GM India says all investments complete

June 08, 2009 11:02 IST
General Motors India had completed all investments intended for the country well before its parent's bankruptcy filing, said Karl Slym, president & MD.

"We are lucky. We have committed our investments for both our manufacturing facilities located at Halol and Talegaon ahead of the bankruptcy filing. We have sufficient resources until next year."

Slym was speaking on the sidelines of the launch of the LPG version of its small car, Chevrolet Spark.

GM, he noted, has already invested around Rs 1,000 crore (Rs 10 billion) at its Talegaon plant (near Pune) for the manufacture of engine transmissions, and around Rs 1,500 cr (Rs 15 billion) for a car manufacturing facility there. Once the former facility is completed next year, GM would increase localisation across all its Chevrolet models.

GM India, which has invested Rs 5,000 crore (Rs 50 billion) so far in India, had sourced funds both from its parent in the US and from internal accruals.

Now, under the new GM, Slym said, the source of funding changes. "In future, GM will have to raise funds from regional banks, regional GM operations in Asia and from internal accruals." GM's bankruptcy filing in the US, according to Slym, has no material impact on its Indian operations.

BS Reporter in New Delhi
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