In a chat with Sohini Das, GM India president and managing director Karl Slym says, with the launch of the new compact car, Beat, and a positive response to the Cruze, GM plans to cross the 100,000-unit mark this year in sales.
General Motors (GM) India Limited plans to export Beat, its compact car to Europe and countries in the Asia Pacific region, from January 2011.
Chrysler and General Motors each annually outsource $200-300 million (around Rs 10-15 billion) worth of projects to different vendors, which may be hit by 20-25 per cent, says Avinash Vashistha, chairman and CEO, Tholons, a research and advisory firm. While Chrysler has filed for bankruptcy, there is talk that GM may follow suit.
According to the Auto Component Manufacturers Association, the apex body of component makers in India, global sourcing of components from the country will double from $2.95 billion to $5.9 billion in 2008-09, and is slated to hit $20 billion in seven years.
The companies hope 2010 would be a better year for them as the economy begins to show some signs of recovery.
US Treasury Secretary Timothy Geithner has said he would not rule out the option of forcing out chief executives of banks which have received taxpayers' money but are not performing well.
Attributing to a person familiar with the matter, The Wall Street Journal said, GM plans to begin paying back a $6.7 billion loan it owes to the US government starting late this year, which would put it on track to potentially repay the entire loan by the middle of 2011.
"We have so far invested $1 billion in India and there is no question of puting a cap on it", Karl Slym, president and managing director of India operations, told reporters in Bangalore after unveiling the SUV Chevrolet Captiva Automatic, a premium Sports Utility Vehicle and small car Spark Muzic Special Edition.
The company, which is also looking to strengthen its position in the sports utility segment, today launched the automatic transmission four-wheel drive version of its popular sports utility vehicle Captiva, priced at Rs 20.3 lakhs (Rs 2.03 million). He said the company will be launching an LPG-driven car in the first half of this year, without specifying details, adding it would be followed by other LPG vehicles.
US auto major Chrysler on Friday said it has received four billion dollars as emergency loan from the government, a move to avert a collapse of the ailing automaker.
In its first major marketing campaign since emerging from bankruptcy, GM is putting its new chairman Edward E Whitacre Jr in the spotlight as the spokesman for the offer to give customers a full refund within 60 days on any GM car or truck, The New York Times said.
GM India has last week announced plans for launching four new models in the Indian markets in 2010. "The new mini-car will be in the market by January next year and we will produce more than 40,000 units in the first year. Of this, we will export 20 per cent overseas, including to the European and the Asia-Pacific markets," GM India president and managing director Karl Slym told reporters on the sidelines of the SIAM annual convention in New Delhi.
The Cruze is built on a new platform and includes a next-generation power train.
Maharashtra CM Vilasrao Deshmukh declared that the state has received approx Rs 20,000 FDI in the last 3 years.
Noting that the talks between GM and Cerberus Capital Management, the private equity arm that owns Chrysler, began over a month ago, the New York Times said, 'negotiations are not certain to produce a deal.' Quoting two people close to the process, the newspaper said that chances of a merger were "50-50" as of Friday and "would most likely still take weeks to work out."
When large companies fall into financial difficulties, it always amazes me to see where they turn first for help in overcoming their problems -- to their hourly workers and other frontline employees, who are asked to take pay cuts and reductions in benefits such as health insurance and pensions.
The Supreme Court on Monday directed Uber to apply for a licence within three weeks to operate in Maharashtra, stressing that cab aggregators cannot function without one. A bench led by Chief Justice of India (CJI) D Y Chandrachud said that an earlier interim order by the Supreme Court that had allowed Uber to operate in the state would not provide legal cover, since an aggregator cannot operate without a licence. It ordered Uber to apply for a licence by March 6, said a report by Bar and Bench.
Three of this year's bankrupt companies -- GM, Chrysler and Thornburg Mortgage -- have found place among the 10 biggest ever bankruptcies in the American history.
The car maker, which filed for bankruptcy protection under Chapter 11 on Monday, owes $172.81 billion in total debts to its 50 largest creditors, including ArcelorMittal. In its filing with the bankruptcy court in the southern district of New York, GM said it has a 'trade debt' of $9.55 million to be paid to NRI-billionaire Lakshmi Mittal-led ArcelorMittal. According to the filing, the auto maker has assets worth $82.29 billion.
Bankruptcies of automakers General Motors and Chrysler could cost as many as quarter million people their jobs over the next year and a half, a media report says.
GM shares, which were listed at the New York Stock Exchange on December 20, 1916, were worth close to about $100 a piece in 2000. The going-under of this iconic carmaker has been billed as a 'surgical bankruptcy' by the government for its revival into a new GM in the next two-three months, but the long-running restructuring exercise could not help avoid a loss of over $10 billion in the past one year for investors.
General Motors announced it will launch its new mini compact global car in 2010. It also announced that it would launch the Chevy Volt -- its first electric car, in the Indian market next year. But it ruled out an entry into the Rs 1 lakh car segment. The company is also looking at India as an export base in the coming years as it increases the capacity of the newly commissioned car and engine plant in Maharashtra from 140,000 to 300,000 vehicles.
General Motors India on Wednesday said it would hike the prices of its multi-utility vehicle Chevrolet Tavera ranging from Rs 4,800 to Rs 8,700 across all variants from December 24.
The engine plant will have an annual capacity of 1.6-lakh engines which could be expanded to 3-lakh engines per annum, the company said. The engine and car manufacturing plant will employ 1,400 people.
Nearly $1 trillion in risky debt comes due from 2011 to 2015, and even if the credit crunch is long past, companies will likely struggle to refinance it says CreditSights.
General Motors HAS appointed Arvind Saxena, former Managing Director of Volkswagen Passenger Cars India, as the President & Managing Director of its Indian unit.
The New York Post has reported that the US, which is wrapping up stress tests on banks, may oust Vikram Pandit as Citi's CEO. Pandit's future at Citi has been hanging in the balance as the financial services major has already received three lifelines from the Federal government to stay afloat.
General Motors will move ahead with bankruptcy process at a faster pace if it becomes necessary to restructure the auto maker, its new chief executive Fritz Henderson has said.
General Motors' Rick Wagoner on Monday said he has stepped aside as the chief executive officer of the company after US White House officials asked him to leave the ailing auto maker.
Car owners in India had fewer problems with their new vehicles, with the JD Power Asia Pacific Satisfaction Index Study revealing that eight of the 11 manufacturers had improved their performance.
As the rupee continues its freefall against the dollar, cars, TVs, washing machines and other home appliances are set to cost more with companies set to hike prices to offset impact on their margins.
The fourth largest car manufacturer by sales, General Motors, is planning to launch its mini commercial vehicles (MCV) sold in China under the brand name Wuling in India in the near future.
With less than a month to go for the two mega television shows - Kya Aap Paanchvi Pass Se Tez Hai of Star Plus and the BCCI-promoted Indian Premier League on Sony - companies have lined up in right earnest for sponsorship deals with the broadcasters. Star Plus has signed on a string of advertisers for the Shah Rukh Khan-anchored show. These include confectionery brand Halls, Pidilite Industries, Havells India, L'Oreal India, Tata Sky, Parle Products etc
Automakers finish 2008 on a bleak note. Expect 2009 to be worse.
UltraTech Cement was the biggest gainer in the Sensex chart, climbing 3.13 per cent, followed by Kotak Mahindra Bank, Tata Motors, Axis Bank, Maruti, Bajaj Finserv, Bajaj Finance and Mahindra & Mahindra. In contrast, Infosys, Tech Mahindra, Tata Consultancy Services, Wipro, Bharti Airtel, HCL Technologies, ICICI Bank and Nestle were among the laggards.
George W. Bush on Friday handed the fate of US carmakers to president-elect Barack Obama as he announced plans to lend General Motors and Chrysler $17.4bn to survive the next three months.
Despite carmaker drama in the U.S., and a failed deal with Chrysler, China's auto champ may be poised to go international.
Automobile manufacturer General Motors on Wednesday cut the price of its vehicles by up to Rs 30,500, following the government reducing excise duty.
General Motors also plans to increase sourcing from India over the next 4-5 years to $1 billion annually.
