Chrysler and GM bankruptcy – No impact on TCS and Wipro.

The media has been making wild guesses about the impact of Chrysler and GM bankruptcies. Economic Times went on to say how Infosys will be impacted along with TCS in case of Chrysler bankruptcy, the news made one point very clear the Media lives and thrives on speculation and Rumors. The fact that Infosys withdrew from Chrysler almost a year back and only TCS and Syntel are Chrysler’s vendors was probably not known the speculator from Economic times.

And in terms of impact Chrysler included TCS in its critical supplier list and All TCS payments were cleared by bankruptcy courts. There has been no ramp down after the bankruptcy as these companies had already planned out these things. Also TCS has started getting more work in terms of renaming the Chrysler in its applications and preparing for the Fiat alliance.

This could be the case with GM, the Government is helping these companies clean the slate in terms of Debts and nothing more. So If at all there is any impact it could be positive on the Indian vendors in long term.