GM facing difficulties in raising funds in India


The company also said the falling sales of General Motors India, the wholly-owned subsidiary of the US firm, were mainly due to customers' perception on the months-long uncertainty over the future of GM, which finally filed for bankruptcy protection in a New York Court on Monday.

"It hasn't been easy in India to raise the money (USD 200 million). Frankly, we have found difficulties from Indian financial institutions, but we have not given up," GM Group Vice-President Nick Reilly told reporters in a conference call.

"The majority of the fund remains to be raised. It might take us little longer, but the opening of the plant is largely on schedule. It may be delayed by a month or two," he added.

Reilly also said that the company's sales in the past couple of months have been declining in India on account of "customers' perceptions" in view of the uncertainty prevailing in the US market over the parent company's fate.

Comments (+)