REUTERS, TALEGAON, India- General Motors Corp's most important priority is to turn around its North American business and it will continue investments in emerging markets, its chief operating officer said on Tuesday.

"The most important thing we can do is to turn around the North American business," Fritz Henderson told reporters after inaugurating the US carmaker's second plant in India, located in the western Maharashtra state, with an annual capacity of 140,000 units.
 
GM, which last week said it would put more than $200 million in an engine plant in Talegaon for an eventual capacity of 300,000 units, will continue to invest in emerging economies, Henderson said.
 
"We see greater consumer resilience in emerging economies. We expect growth in China, India and other emerging markets will continue."
 
GM aims to double its share of an increasingly competitive Indian market where Maruti Suzuki, Hyundai Motor Co and Tata Motors Ltd dominate. It will build a new small car in India from 2009.
 
The troubled US carmaker has been under increasing pressure to cut costs and raise capital because of the slump in US auto sales that pushed its first-half sales down 16 percent.
 
High fuel prices, a consumer shift away from low-mileage trucks and the weakest US auto sales in a decade have increased investor doubts about GM's ability to ride out the downturn.

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taylor  - Turning round the North American Business |2008-09-06 06:01:30 In my opinion if they move to North America it will result in bringing inflation conditions. ------------------ Taylor Blazeinfotech 0   0

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