General Motors in India stated on Friday that the bailout failure will not affect the planned investments in India. According to the company vice-President, P Balendran, the company is not going to change its plans for the Indian operations.
The company started setting up a new power-train facility at Talegaon with an initial investment of over $200 million. The plant will have a manufacturing capacity of 200,000 units once it is finished. General Motors has already invested $300 million in setting up vehicle manufacturing unit with a capacity of 300,000 units.
"GM Asia Pacific has been making money, and GM Latin America and Middle East is making even more money," said, P Balendran. GM also has operations in Europe and America which are currently facing tough conditions. The Indian operations have been making profits since 2004 and thus there will be no change in component sourcing by General Motors from India. "As of now, we are sourcing components worth $ 500 million for different operations of GM across the world. By 2010, we will reach our projected target of $ 1 billion," he added.
