GM India reconsidering Daewoo deal

Piqued by the delay in finalising the deal to acquire the car assembly unit of the now defunct Daewoo Motor India, General Motors India (GMI) today said it was now "seriously looking" at other options to expand operations in the country.

"We have been in negotiations with the creditors for the acquisition of the Daewoo facility to get the small car assembly unit. Somehow, that has got delayed inordinately. So, we are now looking at other alternatives quite seriously," GMI president and managing director Aditya Vij said today.

Even as the company completed a due diligence of the Surajpur plant of Daewoo in August 2004, there has been not much movement thereafter.

Noting that the plant has virtually become junk, Vij said: "We will not wait for too long. It is already delayed. Our interest has also waned over time. And the issue between the government and creditors has not yet been resolved."