Auto maker General Motors has no plans to manufacture or reinvest in at the Talegaon manufacturing facility. Work on completion of the sale of the site, announced in January 2020, is pending FDI approval and the company was not considering alternative options for the site, George Svigos, director of communications, GM International, said in a statement issued on Friday regarding the Talegaon plant. This statement was in response to the Maharashtra state government decision to reject the GM application for shutting down the plant.
General Motors plans to move for the reversal of this order. “The state’s decision amounts to a requirement that GM either produce vehicles for which there are no customer orders, or pay workers indefinitely for doing no work. We reject both suggestions,” Svigos said. “General Motors’ plan in relation to the Talegaon facility is unchanged. GM production has ceased and there will be no future GM production at the site. GM took the decision to close the site because there is no demand in our export markets for the vehicle previously made in Talegaon.” he said.
The company says it is committed to offering a fair separation package to the workforce. The plant has 1,578 full-time workers and 2,000 contract workers. The GM union has gone to court against the plant closure.
GM had announced factory closure from December 24 after the deal to sell the plant to Chinese automotive company Great Wall Motors (GWM) could not be completed. GM had exited from the domestic market in 2017 and was using the plant for exports.
GM had signed an agreement with Great Wall Motors in January 2020, which was to be completed by end of the year. GWM had signed a MoU with the Maharashtra government for investing around $1 billion but this was put on hold in June 2020. The deal will need approval from the central government, which has not come through.
The GM plant spread across 300 acres had capacity to produce 1.65 lakh vehicles and an engine plant to make 1.6 lakh engines.
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