US-based General Motors Company (GM), which emerged from bankruptcy in early July, said yesterday it may seek funds from outside Thailand to help finance its delayed diesel-engine and pickup-truck projects in Rayong.

Overseas funding would complement funds raised locally from financial institutions, said Nick Reilly, GM's executive vice-president and president of GM International Operations (GMIO).

GM's Thai unit has been in talks with local financial institutions led by the Export-Import Bank of Thailand to raise the 15 billion baht (US$ 441 million) required for its pickup-truck production line and diesel-engine plant.

The funding plan should be concluded this year, Mr. Reilly said in Bangkok. "Most of the funds will be raised from local financial institutions - not the government - but we don't expect to get it all from Thailand. Outside money would therefore complement this amount."

The projects have been delayed by one year from an original schedule and GM now aims to start production within 18 to 24 months from now, he said.

GMIO oversees the US automaker's business outside North America, which accounts for 65% of GM's global sales. The Asia-Pacific region contributes about 30% of global sales, Europe 25% and the rest of the world 10%. GMIO now has a headquarters in Shanghai, where Mr. Reilly is based, which complements another base in Detroit, he said.

The restructuring is aimed at flattening global functions to improve and speed up decisions by local executives. Executives close to the market should be assessing risks and deciding when to launch products, he said. "Thailand, for example, is very strong in pickup trucks and we hope that we can get it right for the Thai market," he said.

GM is aiming for a 12.5% share in global sales of 52 million vehicles this year, down from 65 million in 2008, said Mr. Reilly. The US market remains bleak with volume expected to plunge to 10 million units from a previous estimate of 17 million, while Western Europe, Russia and Latin America are also down sharply.

China has now emerged as the world's largest vehicle market. Sales in the mainland are forecast at 11 million this year, up from an earlier estimate of 9.5 to 10 million, with GM enjoying a record market share of 13.5% in the first six months, said Mr. Reilly.

Steve Carlisle, president of GM (Thailand) and Southeast Asian operations, said the company targets to maintain its market share of between 3.5% and 4% in Thailand this year and in 2010. For ASEAN, where GM has a market share of between 1.5% and 2%, its projection has improved from an earlier forecast of a 20% cut in volume.

"We are confident that the ASEAN market will recover substantially in the next two years and we want to increase our presence in ASEAN as in other emerging markets," said Mr. Reilly.

He also called for clearer policies and incentives for alternative fuels like ethanol and CNG. "We want to hear somewhat clearer and better incentives from the (Thai) government," he said. "(Moreover) any policy that could enhance the competitiveness of the component supplier base could strengthen the automotive industry in general."