The Hindu : Business : GMI in talks with Daewoo creditors

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Wednesday, Nov 17, 2004

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GMI in talks with Daewoo creditors

By Our Special Correspondent

NEW DELHI, NOV. 16. General Motors India (GMI) is in talks with the creditors of Daewoo Motors India Ltd. (DMIL) to acquire the car assembly unit of the failed carmaker at Surajpur in Greater Noida that is lying idle.

"We have recently completed the due diligence process (to acquire the car assembly unit)... We are in touch with creditors. We have set a time frame which we are not willing to share,'' GMI India President and Managing Director, Aditya Vij, told media persons at the launch of a new-look `Chevrolet Optra' aimed at consolidating sales of the sedan.

"The company plans to utilise the assembly line for manufacturing a mini (compact) car, to be launched next year. We do not want to delay the acquisition,'' GMI Vice-President (Corporate Affairs), P. Balendran, said even as Mr. Vij observed that there were certain legal and government issues that were being sorted out.

DMIL was one of the first foreign automakers to set shop in India. It used the Surajpur plant make `Matiz' along with `Cielo' and `Nexia' sedans. Its main creditors with whom GMI is holding negotiations include ICICI Bank, IDBI and Exim Bank.

The new look `Optra' is the base model of the `2005 NY edition' with 1.6 litre petrol engine. It has been priced at Rs. 7.47 lakhs (ex-showroom, Delhi). The car will be available in five variants and the top-end 1.8-litre automatic version would sport a price tag of Rs. 10.84 lakhs, Mr. Vij said adding that the company would continue to roll out new models to meet changing tastes.

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