GM: Thai, Asean Operations Unaffected By Restructuring Process
27 May 2009 - 10:29PM
Dow Jones News
General Motors Corp. (GM) said Wednesday its operations in
Thailand and Southeast Asia are unaffected by its ongoing
restructuring.
"Operations in Thailand and the ASEAN region will remain
unaffected by GM Corp.'s situation in the U.S., even in the event
GM Corp. files for Chapter 11. This is because GM Thailand,
including Chevrolet Sales Thailand, and other operations in ASEAN
are locally-incorporated entities which accords them the ability to
operate independently from its parent company in the US," General
Motors said in a statement.
Operations in the Asia Pacific are expected to record growth
this year, boosted by the launch of new products and product
upgrades throughout the year, it said.
"Proof of growth potential in this region can be seen in GMAP's
(General Motors Asia Pacific) growth," GM said. The Asia-Pacific
operations posted double-digit growth in the first quarter of 2009,
and GM said in the statement it believes this will be the trend for
the rest of 2009.
Expansion projects in Thailand remain on its agenda, Nick
Reilly, vice president of GM Group and president of GM Asia
Pacific, said in the statement after meeting with Thai Prime
Minister Abhisit Vejjajiva.
"For Thailand, the two sizeable manufacturing expansion projects
- for tooling and assembly of a new mid-sized pickup and SUV
models, and for a diesel engine facility in Rayong, remain on GM
Thailand's agenda," the company said.
The Thai unit of General Motors Corp. is seeking financial
support from local financial institutions for its future investment
in a THB15 billion ($436 million) diesel-engine and one-ton pickup
project.
"The loans and governmental support it has been seeking in
Thailand were not for GM Thailand's sustainability, but to ensure
its continued growth and to avoid sustained delays to its growth
plans in Thailand, especially in light of the current financial
situation," the company said in the statement.
-By Supunnabul Suwannakij, Dow Jones Newswires; 66 2266 0744;
tu.suwannakij@dowjones.com