General Motors India officially
announced that that it has ceased production at the Halol facility in Gujarat.
With this move, the company has decided to consolidate its manufacturing at the
Talegaon plant in Maharashtra. The company used to produce the Tavera model in
GM India is owned by a 50:50 joint
venture based out of Hong Kong in which General Motors and SAIC (Shanghai
Automotive Industry Corporation) Motor Corporation are equal partners.
The going for GM India has
been tough in the Indian passenger car industry. For the fiscal ended March 31,
2017, the company sold a mere 25,823 units inthe domestic market, a drop of
20.64 pc compared to the previous year. But on the export front the company has
done remarkably well, selling 70,969 units in 2016-17 thereby registering an
88.63pc growth, according to data tabulated by SIAM.
GM India President and
Managing Director Kaher Kazem said all GM manufacturing in India will now be at
the company’s Talegaon facility.
“The consolidation of
manufacturing at our Talegaon facility is an important milestone for GM India,”
said Kazem. “That said, we are mindful of the impact on our employees at Halol.
We have committed to support them through this necessary transition with
generous separation payments or the option of continuity of employment at
Talegaon,” he added.
Kazem said a range of
additional support measures had been put in place for both the employees who
opted for the significantly enhanced separation payments and those who will
transfer, including tax and financial advice and pre-transfer visits to
“Since we first announced in
2015 that we would cease manufacturing at Halol, we have worked with all
stakeholders to ensure a smooth transition,” said Kazem.
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