GM looks at setting up manufacturing ops in Malaysia

Isn't this a good news? Opening a manufacturing plant in Malaysia. And that means we are able to buy GM's car at very reasonable price, right? If that is what it's going to be, then it's a good news.

/keeseng

Source
PETALING JAYA: General Motors Corp (GM) is looking at establishing manufacturing operations in Malaysia as group operations outside of the US are unaffected by the bankruptcy filing in the US.

President for South-East Asia operations Steve Carlisle said GM’s operations in this region were not expected to feel any impact from the restructuring of GM through the courts in the US.

“In Asean, the strategy for growth remains. Plans for Malaysia are not directly impacted and we want to expand our portfolio, distribution and marketing,” said Carlisle at a media briefing yesterday.

Steve Carlisle ... In Asean, the strategy for growth remains

“We are looking to go into a local manufacturing scenario and those initiatives will continue.”

GM on Monday filed for bankruptcy protection as it planned to undergo a restructuring exercise that would see a new leaner and more efficient company emerging in about 60 to 90 days.

The new company will include selected operations and brands from around the world as the company is positioned to be profitable and self-sustaining.

GM’s operations in Asia have been performing well over the past few years. GM is the largest overseas manufacturer in China and India, with a big presence in the fast growing markets.

“Despite the economic crisis, GM Asia Pacific recorded unprecedented growth in the first quarter of this year, and all indications point to the continuation of this trend for the rest of 2009,” said Carlisle in a statement.

Carlisle said GM Asia Pacific, including GM Asean, was important to the new GM and would maintain normal business operations.

For Malaysia, HICOM-Chevrolet Sdn Bhd CEO Sanjeev Garg said expansion plans for the operations here were also well under way. He said the number of sales, service and spares outlets was forecast to grow to 25 this year from seven currently.

He expects the introduction of the Chevy Cruze in the third quarter to lead to a bump in sales to 150 to 200 units a month from the current 60 to 70 units monthly.

Garg said there was a possibility that plans for manufacturing operations in Malaysia might include DRB-HICOM Bhd, given its relationship with GM.

“We are still exploring the options,” he said.

Manufacturing operations in Malaysia would give GM more leeway in reducing taxes on its cars in the region.

Manufacturers who own plants in at least two countries are eligible for lower taxes under the Asean Free Trade Area.