General Motors declared that once it steers itself out of bankruptcy, it will acquire its strongest operations, including the Indian business.
The beleaguered car giant, which went bankrupt on June 1, has received the approval for its restructuring plan from the US Court. After closing of the transaction, General Motors (GM) will be known as General Motors Company.
The new company is expected to acquire GM's strongest operations. This will include GM subsidiaries outside the United States, including its operations in India and rest of the Asia Pacific region, which will continue to operate without interruption.
General Motors India (GMI) reported that the new General Motors Company will have a stronger balance sheet allowing it to reduce its risk, operate profitably and reinvest in key areas such as product development. It will also have a very positive impact on GM's operations in India as well.
GMI President and Managing Director said that the new GM will have a very positive impact on GM's operations in India as well. “It will enable us to continue to take advantage of our company's global resources through the introduction of exciting new products and the continued commitment to our expansion plans for India," he added.
It is known that the future plans for the Indian operations are on track and General Motors would go ahead with its proposed launch of a luxury sedan and a mini car within this year.