The Hindu Business Line : GM puts off Hummer, Cadillac launch plans

New Delhi, Aug. 1 General Motors plans to stave off the domestic launch of its global sports utility vehicle brands — Cadillac and Hummer — for this year.

For the current year, it plans to almost double the production of its compact car Spark as it commences operations at the new plant in September.

The plant is slated to be inaugurated in the presence of the company’s global President and Chief Operating Officer, Mr Fritz Henderson.

“We are reviewing the launches of our SUV brands. However, we would not be introducing either of the products this year,” Mr Ankush Arora, Vice-President, Sales and Marketing, General Motors India, told Business Line.

The company, which had earlier this year at the Auto Expo said that it was planning to launch the two brands in the Indian market, now feels that it may not be able to keep its promise as the automobile industry remains in torpor with high interest rates and inflationary pressures.

‘No new models’

Revealing the plans for the year, Mr Arora said that the company would not launch any new model.

However, as its new plant at Talegaon in Maharashtra gets operational, it would increase the production of its mini-car Spark to almost 4,000-5,000 units on a monthly basis.

“We have been facing capacity constraints at Halol. With the commissioning of our new facility, we would be able to sell higher volumes,” he stated.

With regard to the company’s intention to set up an engine manufacturing facility, the company’s Vice-President, Corporate Affairs, Mr P. Balendran, said, “We would finalise the location and other details in the coming few weeks.”

When asked about the details of Mr Henderson’s visit, Mr Balendran said, “Apart from the plant inauguration, it would also coincide with the annual convention of Society of Indian Automobile Manufacturers where he would be one of the keynote speakers”.