General Motors is facing tough times in the United States. The company has asked the government for a federal bail out to save jobs and the company. However, the Indian subsidiary of the company is still doing well but it reports that it will fail to meet the sales target originally set for the company in India.
The world’s largest car maker is not far from filing Chapter -11 bankruptcy protection in the United States. This also makes auto component makers in India worried about their business prospects. Manufacturers exported about $1 billion auto components to the US this year but expect a slow down in the exports. Most of these Indian exporters have 90 days outstanding to GM.
General Motors is still hopeful about the developing markets like India and China. It plans to launch its Cruze sedan and a compact car in India next year to revive its sales. The company has already invested $1 billion in India and has two factories with a capacity to produce 225,000 vehicles every year.