General Motors's Daewoo India Purchase Delayed Because of Debts
Nov. 16 (Bloomberg) -- General Motors Corp., the world's biggest automaker, said plans to purchase some assets of Daewoo Motors India Ltd. have been delayed because of the unit's unresolved debts.
General Motors has almost completed examining the accounts of the Indian company, Aditya Vij, president and managing director of General Motors India Ltd., said in an interview in New Delhi today. General Motors said in March it plans to buy the assembly plant of Daewoo Motors India to make minicars lcoally.
"We have completed our due diligence by and large,'' Vij said. "The issue of customs is not resolved between the creditors and the government, so unless that's clear, obviously we will be hesitant to go ahead.''
Daewoo produced the Matiz minicar, as well as the Cielo and Nexia passenger sedans in India, before the Seoul-based automaker collapsed in 1999. The Indian factory was excluded from a 2001 bailout by General Motors and its partners for Daewoo's assets. General Motors, Suzuki and Shanghai Automotive Industry Corp. together created GM Daewoo Auto & Technology Co.
"In terms of timing, obviously we have set a time line, which I will not disclose, by which it should be decided -- otherwise we have to look at alternative plants,'' Vij said.
General Motors had expected to complete the acquisition process by the year-end, Vij said. The U.S. automaker is in discussions with ICICI Bank Ltd., IDBI Bank and Exim Bank, creditors to Daewoo India, regarding the takeover.