Incidentally, General Motors, which had suffered losses so far, for the first time recorded an operating profit of Rs 4 crore in 1997-98 from the sales of Opel Astra petrol models.

Astra 1.7 TD, fitted with new generation turbo-charger and inter-cooler, complies with the exhaust emission limits which became effective in the Europeam Union from 1996 and is priced at Rs 7.68 lakhs (ex-factory) and about Rs 8 lakhs on Gujarat roads. (No sales tax is charged on the first one lakh GMI cars sold in the state as the unit is situated in the backward Panchmahals district).

The turbo diesel develops 50 kW/68 hp power at 4500 rpm, picks up an acceleration of 0-100 kmph in 16 seconds and 0-120 kmph in 20 seconds, with top speed of 164 km, giving an average of 16 km/lt. The turbo-charger pumps in additional air-fuel mixture in the engine, reducing untreated exhaust emissions, reduced ignition lag having a positive effect on noise attenuation and engine refinement.

Briefing the press on the occasion, GMI president Richard C Swando said the target is to produce 275 to 300 Astra 1.7 TD cars per month, looking to the all round recession in the market. He expected the diesel models to sell than the petrol ones till the country followed a policy of price difference between diesel and petrol.

The plant had rolled out the first Opel Astra petrol model on March 23, 1996 and has sold about 16,000 cars so far. At present, working single shift, five days a week, the plant capacity is to produce six cars per hour, or 50 cars per day, or 1,500 car month. The plant achieves the present level of production working single shift, only two or three days a week.

"Initially," Swando said, "we sold up to 800 to 900 petrol-driven cars per month but had to slow it down to 300 per month. He admitted that with the launch of the diesel model, the sale of petrol version might be cut by 20 to 25 per cent.

He expected the situation might look up by December or January. He refuted the charge that there was any retrenchment or anybody was asked to go on VRS. "We have a very good workforce who stood by us in difficult times. We don't want to dismiss them. The only thing we have dome is not to fill up some of the vacancies."

He claimed the import component of Opel Astra petrol version is about 50 per cent, to be gradually reduced to 40 per cent in 12 to 18 months, much earlier than a speculation in a section of the media. GMI might look for exporting Opel Astra in the neighbouring countries like Nepal and Bangladesh.