General Motors's Daewoo India Purchase Delayed Because of Debts

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Thread: General Motors's Daewoo India Purchase Delayed Because of Debts

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    News Contributor Premium Member coolcaddy's Avatar
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    General Motors's Daewoo India Purchase Delayed Because of Debts

    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.

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    3.0 Liter SIDI V6 mrfunji's Avatar
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    Re: General Motors's Daewoo India Purchase Delayed Because of Debts

    That's cool...not sure how crucial this is to GM's future but lets hope Toyota is on the purchasing board next!

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    Re: General Motors's Daewoo India Purchase Delayed Because of Debts

    I'd say to GM to fix its home market in the United States with greater fervor. Let's get 30 percent market share back. Waste no capital in continuing to come out with some more great product offerings.

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    Re: General Motors's Daewoo India Purchase Delayed Because of Debts

    I think this is just another step into the globalization of car building. I can see fewer and fewer cars being built in the US.. or Japan even. It's just too expensive for car companies when they can build them in other nations for a fraction of the cost. VW Bugs made in Mexico..... GTO's made in Australia..... Ford Focus made in Russia... oh don't get me wrong. I'm sure many cars will still be made in the USA (I can't imagine a Corvette ever being made in Korea or whatever) I could see this really affecting entry level cars and trucks though.

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    Re: General Motors's Daewoo India Purchase Delayed Because of Debts

    Quote Originally Posted by mrfunji
    That's cool...not sure how crucial this is to GM's future but lets hope Toyota is on the purchasing board next!

    Are you on drugs?

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    Re: General Motors's Daewoo India Purchase Delayed Because of Debts

    Quote Originally Posted by Cassie
    I think this is just another step into the globalization of car building. I can see fewer and fewer cars being built in the US.. or Japan even. It's just too expensive for car companies when they can build them in other nations for a fraction of the cost. VW Bugs made in Mexico..... GTO's made in Australia..... Ford Focus made in Russia... oh don't get me wrong. I'm sure many cars will still be made in the USA (I can't imagine a Corvette ever being made in Korea or whatever) I could see this really affecting entry level cars and trucks though.

    BINGO. Couldn't have said it better myself.

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