General Motors shuts down today its Talegaon, India plant
General Motors (GM), which was one of the first brands to set up a car manufacturing plant in India in 1996, has now decided to shut down its operations in the country a day before Christmas. GM had already stopped selling cars in India, but their plant in Pune was operational for exports.
According to a media report, GM’s Talegoan plant near Pune will be shut down today, a day before Christmas. The company has been using this facility to manufacture cars for their international markets. GM had already sold its Kalol plant, near Gujarat to Chinese company SAIC, which the company now uses to manufacture cars under the MG brand.
Talegaon plant currently employs around 1,800 salaried and hourly workers. These will be paid salaries till Jan 2021, while the legal and administrative staff will be with the company till March 2021.
GM India said it will support the affected employees with separation packages and transition support. “We have made all relevant disclosures regarding investments in operations,” the company added.
GM and Great Wall Motors had signed a binding term sheet in January 2020 and were scheduled to complete the transaction in the second half of the year, but amid the border hostilities, the Centre has placed stricter rules for investments from China and other neighbouring nations. This didn’t help the case as it forced GM to shut down its operations with no deal in place with Great Wall Motors. In June, 20 Indian soldiers died during a clash with Chinese soldiers at Galwan Valley in Ladakh.
GM India, however, remained hopeful of a solution to get the deal a closure and said, “Both companies continue to work with all relevant authorities to secure necessary government approvals to support the transaction, which will deliver future jobs at the site.”
