U S Court approves GM's Asset Sale to New GM GM India operations gain in strength

New Delhi – General Motors achieved another positive milestone in its reinvention when a US court approval was achieved yesterday. Consequent to closing of the transaction, the new GM will be known as 'General Motors Company' and continue to operate under GM’s historic corporate and sub brands. The approval marks another step towards the launch of an independent new GM.

The new company will acquire GM’s strongest operations. They include GM subsidiaries outside the United States, including its operations in India and rest of the Asia Pacific region, which will continue to operate without interruption. The new company will have a competitive operating cost structure because of the agreements signed recently with the United Auto Workers (UAW) and Canadian Auto Workers (CAW). The new GM will have a stronger balance sheet allowing it to reduce its risk, operate profitably and reinvest in the business in the key areas of advanced technology and product development.

Commenting on the US developments, Mr. Karl Slym President and Managing Director said. "The new GM will have a very positive impact on GM’s operations in India as well. It will enable us to continue to take advantage of our company’s global resources through the introduction of exciting new products and the continued commitment to our expansion plans for India".

We will remain aggressive in all areas of our business and continue to introduce new and exciting products that are best in class, in order to contribute to our own long-term viability and the bottom-line of our company as a whole. Our product programs and other plans for the future remain on track.

In its 14 years of established operations in this country, GM India has invested over Rs.5000 crore to create a manufacturing capacity of 225,000 vehicles per annum. We are deeply committed to this market, our customers, suppliers, dealers and all other stakeholders to continue our rapid story of successful growth in India. Over 4000 people are directly employed by GM India at our manufacturing plants in Halol and Talegaon, our Engineering, R&D and Design Centre in Bangalore and our corporate office in Gurgaon.

It may be recalled that GM India has already announced the launch of three brand-new cars for this year. Of these, it has launched Chevrolet Captiva Automatic+ in January and its second offering of the year, the premium luxury Chevrolet Cruze sedan, will be launched in September. An all-new, segment-leading mini-car will also hit Indian roads towards the end of this year. The company has already launched the LPG version of Spark and is getting ready to launch CNG options in other existing models in the coming months.

General Motors India has two state-of-the-art manufacturing facilities at Halol in Gujarat and Talegaon in Maharashtra. General Motors India manufactures the Chevrolet Optra Magnum, Chevrolet Aveo, Chevrolet SRV, Chevrolet Aveo U-VA, Chevrolet Spark, Chevrolet Tavera and Chevrolet Captiva for the Indian market.