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General Motors to buy shut Daewoo India car assembly plant
By siliconindia staff writer
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Wednesday, 03 March 2004, 20:30 IST
NEW DELHI: General Motors on Wednesday said it has offered to purchase the car assembly unit of Daewoo India to manufacture mini cars for the country and the due diligence process for the deal would start immediately.
"Our offer has been accepted by the principal creditors of Surajpur-based Daewoo Motors India Ltd and we shall start the due diligence immediately to arrive at the price to be offered by us," General Motors India's vice-president P Balendran told PTI.
The creditors of DMIL include ICICI Bank, IDBI and Exim Bank, Balendran said adding that purchasing the car assembly unit of Daewoo Motors would be subject to approval of the respective boards of General Motors, the creditors and judicial and government authorities.
"Pursuant to such sale, General Motors would purchase 100 per cent of DMIL's car assembly assets," Balendran said.
Commenting on the development, deputy managing director of ICICI Bank Kalpana Morparia said: "today's development represents a significant milestone for automobile industry in India. It sends a powerful message that India is a good place to invest and good place to do business".
In a statement issued in Singapore, GM Group vice-president and president of GM Asia Pacific, F A Henderson said: "this facility will allow us to produce a new generation of cost-competitve vehicles that can be marketed through our Chevrolet distribution channel."