General Motors / Ford bailout proposal failed in US Senate- will it impact India?

ritz830 · 12th December 2008, 10:39

The US car manufacturers were denied the long waited bailout today. As far as I know, the only other option would be selling the company i.e takeover. If there is any other way out, please let me know

I have no idea what would happen to the Indian subsidiaries like GM India. I was about to buy the spark. Still my decision has not changed, but I have my doubts.

What do you thing guys, is Chevy spark a completely Indian made car? or does it rely on imported parts? If it has imported parts, then the situation is gonna be even more difficult.

Please feel free to debate on this issue and site reference from other companies i.e takeovers, tie-ups, complete closure etc..

CrAzY dRiVeR · 12th December 2008, 10:48

Quote:

Originally Posted by ritz830

What do you thing guys, is Chevy spark a completely Indian made car? or does it rely on imported parts? If it has imported parts, then the situation is gonna be even more difficult.

First of all, the problem is not limited to imported parts. If GM is as short of cash reserves as its statement says, there could be a heavy impact on the company, its subsidiaries and all. They might have to sell off some subsidiaries etc to escape the situation! That said, GM may not survive the crisis as the company we all know it to be.

Although Spark is a nice car, this is not a good time to buy it. If you have decided to buy Spark only, better wait and watch a few months!

EDIT: Any links to share? I can't seem to find any!

vivekiny2k · 12th December 2008, 11:02

Auto Bailout Bill Collapses in Senate Despite Intense Negotiations - FOXNews.com Transition Tracker

aseem · 12th December 2008, 11:07

I think its quite similar to the 700 billion dollar bailout which failed in its first form before being approved a week later. So I do see hope at the end of the tunnel. I am quite hopeful it would go through eventually in a different form...

mechaholic · 12th December 2008, 11:11

well , it would be interesting to see the future of these auto giants. you can see the news here Auto bailout suffers possibly fatal blow in Senate - Dec. 11, 2008

The matiz is taking down GM too

ramkris · 12th December 2008, 11:14

Wasnt there a 14 billion bailout package announced, for GM and chrysler?

ritz830 · 12th December 2008, 11:54

I remember reading somewhere in Team-bhp that the Chevy Spark is completely Indian made car. So the spare parts are readily available and cheap. Also, most local mechanics could service it. I believe that is true?

pshyamsundar · 12th December 2008, 12:01

Well I think it is very simple. If there is no GM in US then there will be No GM in India.

sids911 · 12th December 2008, 12:05

Even if GM India would be profitable, it would suffer heavily in terms of perception. Everyone would eventually come to know about bankruptcy here, and would resist to buy a car from a company with this tag attached.i.e, IF and WHEN they file bankruptcy.

Avin · 12th December 2008, 13:25

Quote:

Originally Posted by aseem

I think its quite similar to the 700 billion dollar bailout which failed in its first form before being approved a week later. So I do see hope at the end of the tunnel. I am quite hopeful it would go through eventually in a different form...

and I agree with you here bhaaijaan.

amit27 · 12th December 2008, 15:23

Ford is planning to sell Volvo and M &M is rumored to be frontrunner so you might see Volvo by Mahindra tag . GM is also likely to be chopped off and sold into bits this means GMDAT which worked on Spark et al might be purchased by Munjals or Bajaj and Spark becomes hamara Spark or desh ki dhadkan.

ritz830 · 12th December 2008, 16:50

Quote:

Originally Posted by amit27

Ford is planning to sell Volvo and M &M is rumored to be frontrunner so you might see Volvo by Mahindra tag . GM is also likely to be chopped off and sold into bits this means GMDAT which worked on Spark et al might be purchased by Munjals or Bajaj and Spark becomes hamara Spark or desh ki dhadkan.

Bajaj & Spark,

Actually this tie-up looks very apt.

SirAlec · 12th December 2008, 17:05

Do you recall what was spark called before, and what happened to the parent company.

Some how Daewoo romania survived. Have no idea how?

bhp1 · 12th December 2008, 18:31

Someway or the other impact would definately be felt in India too. Though as the quantum of investment is peanuts compared to those in US, so these companies can carry on doing business here with just fringe finances.
But as someone pointed out, perception will surely change & Indian market is very sensitive to such happenings, products won't fly of the shelves as easily & word of mouth that does wonders, will work adversly!

4x4addict · 12th December 2008, 19:01

Bankruptcy doesn't mean that they have to shut down. It's called Chapter 11 reorganization. They will re-negotiate with the debtors and unions and try to keep the company alive. If that fails then it will be liquidated. I don't think it will come to liquidation. However, GM will take some body blows this time. I was never a fan of GM especially since they try to palm of korean brands as chevys in the Indian market so I am not going to shed any tears.

If Porche or Toyota goes Bankrupt, I will be emotionally distraught and will need councelling.

12th December 2008, 10:39	#1
ritz830 BHPian Join Date: Nov 2008 Location: chennai Posts: 355 Thanked: 4 Times	General Motors / Ford bailout proposal failed in US Senate- will it impact India? The US car manufacturers were denied the long waited bailout today. As far as I know, the only other option would be selling the company i.e takeover. If there is any other way out, please let me know I have no idea what would happen to the Indian subsidiaries like GM India. I was about to buy the spark. Still my decision has not changed, but I have my doubts. What do you thing guys, is Chevy spark a completely Indian made car? or does it rely on imported parts? If it has imported parts, then the situation is gonna be even more difficult. Please feel free to debate on this issue and site reference from other companies i.e takeovers, tie-ups, complete closure etc.. Last edited by ritz830 : 12th December 2008 at 10:45.
	() Thanks

12th December 2008, 11:02	#3
vivekiny2k Senior - BHPian Join Date: Feb 2005 Location: cincinnati, jabalpur,chennai Posts: 1,264 Thanked: 209 Times View My Garage	Auto Bailout Bill Collapses in Senate Despite Intense Negotiations - FOXNews.com Transition Tracker
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12th December 2008, 11:07	#4
aseem Senior - BHPian Join Date: Jul 2005 Location: Delhi Posts: 1,730 Thanked: 441 Times	I think its quite similar to the 700 billion dollar bailout which failed in its first form before being approved a week later. So I do see hope at the end of the tunnel. I am quite hopeful it would go through eventually in a different form...
	() Thanks

12th December 2008, 11:11	#5
mechaholic Newbie Join Date: Jul 2008 Location: bangalore Posts: 18 Thanked: Once	well , it would be interesting to see the future of these auto giants. you can see the news here Auto bailout suffers possibly fatal blow in Senate - Dec. 11, 2008 The matiz is taking down GM too
	() Thanks

12th December 2008, 11:14	#6
ramkris BHPian Join Date: Oct 2007 Location: Bangalore Posts: 122 Thanked: 20 Times	Wasnt there a 14 billion bailout package announced, for GM and chrysler?
	() Thanks

12th December 2008, 11:54	#7
ritz830 BHPian Join Date: Nov 2008 Location: chennai Posts: 355 Thanked: 4 Times	I remember reading somewhere in Team-bhp that the Chevy Spark is completely Indian made car. So the spare parts are readily available and cheap. Also, most local mechanics could service it. I believe that is true?
	() Thanks

12th December 2008, 12:01	#8
pshyamsundar BHPian Join Date: Apr 2006 Location: Bangalore Posts: 130 Thanked: 0 Times	Well I think it is very simple. If there is no GM in US then there will be No GM in India.
	() Thanks

12th December 2008, 12:05	#9
sids911 BHPian Join Date: Jul 2006 Location: Irvine, CA Posts: 389 Thanked: 43 Times View My Garage	Even if GM India would be profitable, it would suffer heavily in terms of perception. Everyone would eventually come to know about bankruptcy here, and would resist to buy a car from a company with this tag attached.i.e, IF and WHEN they file bankruptcy.
	() Thanks

12th December 2008, 15:23	#11
amit27 BHPian Join Date: Jun 2007 Location: Guragaon Posts: 173 Thanked: 0 Times	Ford is planning to sell Volvo and M &M is rumored to be frontrunner so you might see Volvo by Mahindra tag . GM is also likely to be chopped off and sold into bits this means GMDAT which worked on Spark et al might be purchased by Munjals or Bajaj and Spark becomes hamara Spark or desh ki dhadkan.
	() Thanks

12th December 2008, 17:05	#13
SirAlec Senior - BHPian Join Date: Sep 2006 Location: zxc Posts: 3,393 Thanked: 726 Times	Do you recall what was spark called before, and what happened to the parent company. Some how Daewoo romania survived. Have no idea how?
	() Thanks

12th December 2008, 18:31	#14
bhp1 BANNED Join Date: Jul 2008 Location: NA Posts: 513 Thanked: 4 Times	Someway or the other impact would definately be felt in India too. Though as the quantum of investment is peanuts compared to those in US, so these companies can carry on doing business here with just fringe finances. But as someone pointed out, perception will surely change & Indian market is very sensitive to such happenings, products won't fly of the shelves as easily & word of mouth that does wonders, will work adversly!
	() Thanks

12th December 2008, 19:01	#15
4x4addict Distinguished - BHPian Join Date: Nov 2007 Location: Chennai Posts: 4,483 Thanked: 4,532 Times View My Garage Infractions: 0/1 (5)	Bankruptcy doesn't mean that they have to shut down. It's called Chapter 11 reorganization. They will re-negotiate with the debtors and unions and try to keep the company alive. If that fails then it will be liquidated. I don't think it will come to liquidation. However, GM will take some body blows this time. I was never a fan of GM especially since they try to palm of korean brands as chevys in the Indian market so I am not going to shed any tears. If Porche or Toyota goes Bankrupt, I will be emotionally distraught and will need councelling.
	() Thanks