GM seeks funding from Thai Govt. and banks

General Motors Inc., has been managing to meet its ends uptil now only with the aid of a U.S. bailout and now the company goes further to seek funds from Thailand’s government and banks to help fund its one-ton pickup truck manufacturing and planned $445 million diesel engine factory in the eastern seaboard province of Rayong. Thailand is a major production and export hub in Asia for pickup trucks.

“Due to the financial crisis which affects every major automobile manufacturer in every country of the world, our projects are delayed, notably our diesel engine plant at Rayong. This calls for alternative funding solutions that will allow us to keep up with the progress we need to make,” Steve Carlisle, president of General Motors Southeast Asia, said in a statement released Wednesday.

“This (diesel engine) project isn’t for the sole benefit of GM alone, as it will also help protect and boost employment and investment in Thailand,” he added.

Last August, the company had announced its plans to invest $445 million to build a diesel engine plant in Thailand and upgrade an existing assembly factory. The production of the new plant was supposed to begin in 2010 with an annual capacity of more than 100,000 units. However, the sinking global market forced GM to go cap in hand to the American government for a $13.4 billion lifeline as it teetered on the brink of collapse.