The Indian wing of General Motors is on fund raising venture from PSU of Indian banks out of a consortium. The amount earmarked is Rs1000 crore for the expansion projects of five models in India, in association with the Chinese SAIC. The period targeted for this project is 2012, by the time, there will be three LCVs and two passenger cars, said the company’s President and MD for India. GM is in a JV with the Chinese SAIC on 50:50 basis for launching the LCV during the end of 2011 followed by other models. The amount benchmarked for each category is 50million US dollars and to generate such fund, GM has in a tie-up with the consortium of Public sector banks, he added.
The consortium will be led by IDBI and include SBI, Canara Bank, PNB and Bank of India. The split up of the fund will be Rs800 crore as term loan for 7 years and Rs200 crore as working capital. The vehicles, to be ready by 2012, will bear GM Chevrolet brand image and Halol facility will take care of LCVs while the passenger vehicles will come from Talegaon plant, he said. The passenger car might have the Spark platform and the Aveo platforms. The vehicles coming under SAIC flagship will have 90% localized components from Talegaon plant, which is on the slot of delivering powertrains from this November. The LCVs will be dealt in market by the current GM dealers though proposal is there to have separate division for distribution. The JV between GM and SAIC as GMSAIC Investment Ltd, has already invested 650 million US dollars. The JV has given distribution in functioning by six member board for GM India with equal number of members from two companies.