GM to roll out small car in 2 yrs

General Motors (GM) is likely to roll out its small car Spark, based on the recently acquired Daewoo platform, in another two years.

Meanwhile, GM expects to sell around 94,000 vehicles in 2004-05 against the targeted 32,000 units this year. This was likely to fetch the company revenues of Rs 1,800 crore a year.

Addressing news persons at the sidelines of a press conference last week to announce the launch of Chevrolet Tavera, chief operating officer, Rajeev Chaba said, "The due-diligence of the plant is on, and we are ascertaining the liabilities of the company following which the takeover was likely to be negotiated. This would be followed by the process of receiving government's approval."

"The plant is likely to roll out its first car in nine to 12 months after it receives the government's approval," Chaba said.

Daewoo's Motors India's factory, if successfully sold to GM, will put an end to more than two years of effort by ICICI Bank and other domestic lenders to recover $287 million of dues owed by the embattled South Korean conglomerate.

IDBI, ICICI Bank and Export-Import Bank of India had lent about Rs11 billion to Daewoo Motors India, while commercial banks financed about Rs 2.19 billion to the Indian unit of the fallen South Korean car maker.

However, if the process fails, GM would explore the possibility of commissioning a brownfield project at its Halol factory, or look or new areas.

Chaba, however, declined to comment on the investment that would be required to set up either a brownfield or a greenfield project.

The move to buy Daewoo Motors India's car assembly unit at Surajpur was part of GM's plan to double sales in India.

Meanwhile, GM was likely to break even this year "" after eight years of operation in India.

The company will also invest another Rs 200 crore this year to hike its capacity from 30,000 this year to 50,000 next year at its Halol factory.