March 5, 2004
GM to purchase former Daewoo India Car assembly assets
Singapore – General Motors Corporation has offered to purchase the passenger car assembly assets of Daewoo Motors India Ltd. (DMIL). The offer has been accepted by the principal creditors of Surajpur-based DMIL (ICICI Bank, IDBI and Exim Bank) Subject to the approval of the respective boards of GM, the creditors, and judicial and governmental authorities. GM would purchase 100 percent of DMIL’s car assembly assets.
The facility has an annual manufacturing capacity of 85,000 units and will be used for the assembly of a mini-car for the Indian market. Following refurbishment, production is expected to begin next year.
“We are pleased and excited about the opportunity to grow our business and presence in India,” said Frederick A. Henderson, GM Group Vice President and President of GM Asia Pacific. “This facility will allow us to produce a new generation of cost-competitive vehicles that can be marketed through our Chevrolet distribution channel.”
GM investments in India include the operations of GM India, its vehicle manufacturing plant at Halol in the state of Gujarat and the new GM Engineering Center in Bangalore.