Bankruptcy: GM Indian Arm Unaffected

The Indian unit of General Motors Corporation said in a statement, that their operation are not included in U.S filing Chapter 11 and will continue to function normally. Earlier, the parent company, General Motors(GM) has applied for bankruptcy filing under the Chapter11. The Car manufacturer will now be controlled by the US government.

According to Karl Slym, the president and managing director of GM India, the company would operate as normal. The company has already invested upto 50 billion rupees to build production locations at Gujarat and Maharashtra with annual capacity of 85000 units and 14000 units annually. It is also planning to invest another 200Million USD for setting up its first car engine and transmission factory in early 2010.

GM India has denied the speculation of the workforce reduction in its Sales, Service and production sites. It is going ahead with its business strategies and plans. General Motors corporation currently produces six cars and sport-utility vehicles of the Chevrolet range, including the Spark minicar and Optra sedan. They are also planning to introduce three new cars including a mini car. For developing their business as a whole they will continue plan to introduce new and exciting products. Their product programs and other plans for the future remain on track and expecting good results.

Thus, it is quite clear that GM India is committed to Indian market and is still making big investments.

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