Karl Slym, MD, GM IndiaGM car owners in India would certainly be asking this question with dread – Will GM India be fully insulated from the crisis on American soil?” Karl Slym, MD, GM India, seeks to assure them all, including, of course, those who are planning to purchase a new GM car, “We are committed to ensuring that our customers continue to receive a top-notch sales, service, spare parts and warranty coverage experience. Our dealers will also continue to receive all our carlines, while our suppliers will continue to work with us to supply parts and components for our cars, which we will continue to build at our state-of-the-art Talegaon and Halol facilities...” There is no denying that its India operations are fully insulated from what is happening to its parent company but there is an indirect impact on the company. If we go by the words of the suppliers, the picture is entirely different. “Though GM India is not dependent on its parent company, but it will take a hit on its sales on the grounds of brand equity,” said a vendor to the company on conditions of anonymity. As it is, the company hasn’t been doing well for 5-6 months now. GM India saw a yoy sales fall of as high as 11% in May, 13% in April and 26% in March. They have already been slow to innovate on new models as compared to the competition. Moreover, if customers are gripped by the fear factor in a country like India, even the three year warranty with no maintenance cost and service cost cannot make them line up outside GM showrooms. Clearly, GM’s communications department will have its hands full at the moment.
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Source : IIPM Editorial, 2009
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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