General Motors has clarified that its US Chapter 11 bankruptcy filing would have no effect on its Indian operations and new model plans. The company said it would continue making and selling cars in India and that these operations were not part of the restructuring of GM.

All its India dealers, warranty and customer support services will also remain unaffected and continue to function as normal.

The launch of the restructured GM, which will have substantially less debt and operating cost, is expected to be completed within the next two or three months. The move is aimed at creating a company that GM claims will be “stronger, leaner and ready to move forward.”

According to Nick Reilly, GM Group vice-president and president of GM Asia- Pacific, “We believe this step – which was taken with the support of the US government – is the most efficient and effective means for GM to quickly achieve a competitive and profitable future.”

GM Asia-Pacific, of which GM India is a part, has been performing strongly due to strong sales in China over the past year.

According to Karl Slym, president and managing director, General Motors India, “We have no intention to modify our product, brand or other business plans including new product launches. Our product plans and other plans for the future remain on track.”

In its 14 years of operations in India, GM has invested over Rs 5,000 crore to create a total manufacturing capacity of 225,000 vehicles per annum at its Halol and Talegaon plants and employs 4,000 people.