New Delhi: Indian auto part manufacturers are worried for many of them will be hit if American auto giant General Motors files for chapter 11 - bankrupty protection.
Manufacturers exported components worth $1 billion to the US this year and the order could go down. Component makers say they cannot stop supply to the US. Typically, Indian suppliers have an outstanding worth 90 days to GM.
GM had announced plans to source $1 billion worth components from India by 2010 and have already sourced components worth $500 million from over 50 Indian companies. The company is confident of reaching the target of $1 billion though.
Indian suppliers to General motors will be meeting on November 27 to discuss ways to handle the crisis and could well ask the Government for help.
Meanwhile, the Automotive Component Manufacturers Association is expecting a flat growth of 6 per cent on total exports in 2008-2009.
Component Makers Jittery
- Exports to US from Indian auto component industry was 27 per cent of total exports in 2007-08
- Almost $1 billion worth components were exported to the US in 2007-08
- ACMA expects 6 per cent growth on total exports in 2008-09
IF GM GOES BANKRUPT
- Impact on India will be manifold
- Component makers to seek legal opinion on protecting themselves
- They will also seek the Indian Government's intervention
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