Another setback for General Motors India as it plans to close Halol plant - The Financial Express

Another setback for General Motors India as it plans to close Halol plant

The company announced that they have stopped the production at its Halol plant by 2016, and will focus its operation in Talegaon plant

By: | Updated: March 6, 2017 12:21 PM

General Motors India is planning to shut down it Halol facility, Gujarat in April 2017. Earlier, the company announced to shut down the plant by mid-2016, however, they decided to extend the date to March 2017, reported The Times of India. The manufacturer decided to the hold the plant shutdown last year, to ensure an orderly transition for employees, suppliers and other stakeholders. In 2015, General Motors announced that they have stopped the production at its Halol plant by 2016, and will focus its operation in Talegaon plant

The Halol facility begun its operation in 1996 and is manufacturing Tavera , Enjoy and the Cruze sedan at the plant. The manufacturer has also invested Rs 1,200 crore in Halol facility and has also received Rs 800 crore from the Gujarat Government. Currently, General Motors has two facilities in India, Talegaon, which has a capacity to manufacture 1.70 lakh units per annum and Halol facility, has a capacity of 1.10 lakh units to produce for each year. To increase its production capacity in Talegoan plant, the manufacturer will invest $ 1billion in facility, which includes product development and expansion of plant. In addition, General Motors India will introduce 10 new models by 2020 in India and with this it will create new job opportunities

JN Singh, chief secretary, Gujarat government said "GM has decided to close their plant as per their business decision. The state government has allowed the company to wind up its operation on the assurance that they would resolve all issues related to workers,"

Chinese car manufacturer, SAIC Motor Corp is planning to buy manufacturing assets of General Motors in Gujarat facility. According to the Competition Commission of India, the joint venture will give the Chinese automaker its foothold in India as the Chinese maker is now in the process of entering the Indian market.

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