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|July 20, 1999||
Daewoo India slams brakes on plans to launch Nubira, new models
Even as the South Korea-based Daewoo Corporation seems to have emerged out of possible bankruptcy, its Indian subsidiary -- Daewoo Motors India Limited -- has decided not to launch the planned luxury car 'Nubira' this fiscal.
The parent company has heaved a sigh of relief with the creditors of Daewoo group having agreed to roll over its short-term loans, helping it avoid bankruptcy. However, the Indian subsidiary has slammed brakes on plans to launch any new models, company sources said here today.
The company has recently stated that around $ 100 million would be infused into the Indian subsidiary for rolling out a luxury car based on the popular Nubira platform. However, the company has now decided against rolling out the car in the current fiscal.
''There will not be any new launches this fiscal. We are presently trying to meet the Matiz demand and will concentrate on the small car for the present,'' Byung-Soh Min, deputy managing director of DMIL, said.
Although sources stated that the restructuring exercise in South Korea has impacted the working of the Indian subsidiary, Min said, ''It is business as usual for us.''
Regarding future investments in the Indian subsidiary, Min said, ''There is no need for any fresh investments for the time being.'' Plans for any fresh equity infusion by the parent company have been put off. ''Investments would be made as and when required and will be raised through internal accruals and local borrowings.''
Terming the bankruptcy fears as ''minor hiccups'', Min said there is not likely to be any impact on the Indian subsidiary.
Daewoo Motor Company, a subsidiary of the Daewoo group, controls 92 per cent stake in DMIL while the rest of the equity is in the hands of public and financial institutions.
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