GM to choose location of $200 m facility soon

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Hyderabad, Aug 8: General Motors India (GM) will soon decide on the location for its $200 million power train facility being planned in the country. The company is considering various locations, including Maharashtra and Pune to establish the facility.

Speaking to media persons here on Friday, Karl Slym, president and managing director of GM India said, “We are committed to the Indian market. The company has an engineering division in Bangalore with over 1,400 engineers, a research and development (R&D) unit with over 100 people and a creative design centre, which was opened earlier this year. We are setting up a power train facility, besides enhancing the production capacity in the country.” The R&D unit of the company keeps working on various things, including development of new materials to lighten the mass of the vehicles.

“We are expanding the production capacity by setting up a new facility in Pune with a capacity of 300,000 units. The first phase of the facility with a capacity of 70,000 units should be up and running by the end of December 2008,” he said.

As far as the power train facility is concerned, it makes sense for the company to house the facility in Maharashtra and Gujarat closer to its production facilities. “But we will decide on the location in few weeks. GM’s investment in India will go up to $1 billion, after the investment of $200 million is made in the power train facility,” he added.