Moody On GM;s Bankruptcy

MOODY'S said filing of bankruptey by General Motors may adversly impact India's auto component industry which should increase its exposure in other expanding markets.

Defaults in payments to creditors are unlikely,but given the dimal state of the U.S auto market delays or negotiations on repayment terms may be unavoidable,Moody's economy.com said in a release.

This may have downside implications on the cash flows of Indian suppliers in the near term,it added.

Moody's added that as the big 3 US auto companies-GM,Ford and Crysler-struggle during the resussion,Indian suppliers alsofeel the squeeze

GM Motors Under Financial Crysis

GM motor corparation has a loss of about 600 crore dollars in the first 3 months of 2009.It was 330 crore dollars last years.Earnings has been come down to 2240 crore dollars from 4240 crore dollars.Production has been reduced to 9 lakhs units.Their financial improvement plans has to be accurate herwise they have to follow the path of Crisler.

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