GM Thailand Insists it Can Survive

General Motors (Thailand) Tuesday dismissed speculation it is on the brink of bankruptcy, after the Obama administration gave the US automaker sixty days to produce a better turn around plan.

Inevitably, any US Government decision on GM would be felt by its affiliates, said Steve Carlisle, the Thailand based president of GM Southeast Asia operations. However, he said the Thai unit was a separate legal entity and self dependent unit, responsible for its own operating cash for funding itself.

"Chapter 11 (bankruptcy protection) would specifically apply to the US entity only,'' he said.

"However, we still need to continue adapting our business plans to the challenging environment.''

The US Government has refused to give GM $16 billion but will provide working capital for sixty days for the company to complete a new plan.

Mr Carlisle admitted that the latest development had cast doubt on the way forward for the Thai operations.

"Still, we are optimistic that we will meet the [goal] set out by the US Government. Under the leadership of new CEO Fritz Henderson, we have been on the right direction to survive very difficult time but still have to accelerate work that needed to be done,'' he said.

GM had earlier asked Thai banks for help with loans of fifteen billion baht to keep its diesel engine plant and pickup truck investments going. The Export-Import Bank of Thailand last week said it was ready to help support the automaker.

Source - The Bangkok Post