GM bankruptcy filing to have impact on India operations
There are rising concerns about the potential fallout in India of the collapse of General Motors – one of the largest industrial bankruptcy filings in history. Top level public statements from GM are emphasising that the Indian unit of the US giant was not included in the US filing of Chapter 11, and therefore the operations here will be unaffected and continue to function as normal. However, trade analysts and executives at companies that supply parts to the US firm expect a notable fallout from the development with the primary repercussions being felt by vendors and investors. ‘Indian vendors will be impacted as General Motors goes through the exercise of pruning production, models and brands. But it is those who have been supplying to brands such as Saturn and Hummer who will be badly impacted”, said Sumeet Tandon, chief executive of Lifelong India Ltd, a supplier of plastic components for GM vehicles in North America, Latin America, Europe and Korea. GM India has invested more than 50 billion rupees ($1.07 billion) in the past 14 years to build two factories in the western states of Gujarat and Maharashtra.