The Hindu : Business : Daewoo assets: GM fixes deadline

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Sunday, May 29, 2005

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Business

Daewoo assets: GM fixes deadline

Corporate Reporter

Plans to launch two new models of car every year

CHENNAI: General Motors India has plans to introduce two new models of small car every year in the next three years beginning 2006. Addressing presspersons here on Saturday, P. Balendran, Vice President (Corporate Affairs), said the company might even launch one model by December this year to start with.

The company has strong plans to emerge as a volume player and the intention was to gain 10 per cent market share by 2010, he said. For the current calendar year the target was 40,000 cars with Chevrolet Tavera accounting for 22,000 to 24,000 units, Chevrolet Optra 9,000 units and Opel Corsa 7,000 units.

On the issue of buying out Daewoo India's assets in Surajpur, Mr. Balendran said a decision on this front would be taken by June 30. "We have intimated June 30 as the deadline to the creditors. We hope that they would arrive at a compromise formula by that time" he said.

The intention was to buy the assets `encumbrance free'. If the deal did not work out by that date, the company would explore the option of putting up a green field facility he said. "There are no takers for the assets and they are deteriorating as the plant was idle since April 2002", Mr. Balendran said. The refurbishment of the plant would cost a few hundred million dollars, he said.

Meanwhile General Motors India has increased its production capacity of its Halol (Gujarat) plant to 60,000 units from 25,000 units. The additional capacity was commissioned in March and the capacity would be increased further to 80,000 units by investing another Rs. 100 crore.

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