GM: Thailand Operations Face No Interruption From Asset Sale
08 Juli 2009 - 8:01AM
Dow Jones News
General Motors Corp. (GM) said Wednesday that its operations in
Thailand are expected to continue without interruption following a
U.S. judge's approval of the sale of most of GM's assets.
"The launch of the new GM will have a positive impact on GM's
operations across Thailand/ASEAN," Steve Carlisle, president of
General Motors' Southeast Asia operations, said in a statement.
"It will enable us to continue to take advantage of our
company's global resources through the introduction of exciting new
products and the expansion of our presence in this important
market."
GM operates a plant in the eastern Thai seaboard province of
Rayong, which last year produced a total of 104,461 vehicles. It
expects to produce only 45,000 vehicles this year due to low
demand.
The automaker has also proposed investing THB15 billion ($439.4
million) in a diesel-engine and one-ton pickup project, which is
planned to have a capacity of more than 100,000 units per year.
A U.S. Bankruptcy Court judge on Sunday approved the sale and
gave GM permission to close the sale Thursday.
Under GM's sale proposal, the auto maker is splitting off its
good assets to a new company owned largely by the U.S. government
while leaving the rest to be wound down in bankruptcy.
-By Leigh Murray, Dow Jones Newswires; 66 2 2660744;
leigh.murray@dowjones.com