Though global analysts are suggesting that General Motors (GM) may have to shed as many as 61,000 jobs as an immediate consequence of filing for US Chapter 11 Bankruptcy, GM India says its dealerships and all 4,000 of its employees have no cause for concern and nor it would appear should their customers as models such as the Captiva continue to have a two-month waiting period for delivery.

P Balendran, vice-president, GM India said, “No, we will not be shedding any jobs. All our employees are safe. We are not part of the Chapter 11 Bankruptcy. GM India is a separate entity and a part of New GM.”

In fact, were it not for the fate of its parent company, GMI is in no way unique among Indian automobile manufacturers in this trying economic climate. During the first six months of 2008 along with the rest of the industry, it posted strong double-digit growth on the back of which it managed a cumulative growth of 9.44 per cent for January-December 2008 when the industry average was a decline of 2 per cent. Sales were at their worst for the industry and GMI in December 2008 when they fell by 35.95 per cent but recent months though still negative show a declining trend that is consistent with other players in the segment.

Balendran thinks that sales could only really go up for the industry when the liquidity position improves and interest rates marginally decline in the coming months. The Spark and Captiva continue to grow in terms of sales over their 2008 numbers. The company will also be proceeding with its new product launch lineup for 2009 as per schedule.

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