General Motors Thailand May Get Aid From EXIM Bank Loan If GM ‘Survives’

With General Motors in the US facing difficulties, the Thai unit is looking for local sources of financing to start up construction of its stalled diesel plant by the third quarter.

“We are working with the Export-Import Bank of Thailand to get loans,” Steve Carlisle, president of General Motors Southeast Asia Operations and Chevrolet Sales (Thailand), said yesterday.

“We will present our case and will get a reply in one week to 10 days. If the loans come through we can work out the details within two-three months. If it does not, we will have to re-evaluate our plan and make changes accordingly before re-submitting,” he said while appearing at the Bangkok International Motor Show.

The carmaker was also in discussions with other banks on the Bt15 billion it needs to re-start construction of its diesel plant.

GM has also postponed the launch of the next generation of Colorado pickup trucks by one year.

Another method to bring in more cash is to sell off parts of non-core businesses.

GMAC, the financial division of GM, has been restructured recently with GM only retaining 7 per cent. GM is also in the process of shedding brands like Saab and Hummer.

GM has to look for local funding for its projects as the US has stated that the loan extended to GM was for local use only.

Carlisle said operations had stabilised now after some lay-offs and temporary factory shutdowns.

“We will continue with temporary shutdowns to adjust to market demand. Currently we are also taking this opportunity to re-train our staff.

“What we want to say to Thai consumers is that we’re here to stay. This week we opened a new showroom and our growth plans are still on track,” he added.

Chevrolet has also launched a special edition of the Captiva SUV with GPS navigation.

source: www.nationmultimedia.com