China’s Great Wall to buy GM’s plant at Talegaon – Times of India


CHENNAI: Chinese automobile major Great Wall Motors (GWM) will acquire the Talegaon manufacturing facility of General Motors (GM). The factory will be used by GWM for an Indian debut. GWM VP (global strategy) Liu Xiangshang said the transaction would underpin the company’s plan to enter and invest in India. “The Indian market has great potential, rapid economic growth and a good investment environment. Entering the Indian market is an important step for GWM’s global strategy,” said Liu.

A company statement said, “Under a binding term sheet, the GM India legal entity, which includes the Talegaon facility, will transfer to GWM. GWM will officially debut its Haval brand and GWM EV at the Delhi International Auto Show, and launch its Indian market plan.”

GM India’s other Indian plant at Halol has been taken over by MG Motor India, which is owned by another Chinese major — SAIC. “Since focusing the Talegaon plant on manufacturing for export markets in 2017, GM has been exploring strategic options for better utilisation of the site. Our decision to cease production at Talegaon is based on GM’s global strategy and optimisation of our manufacturing footprint around the world,” said GM senior VP (international operations) Julian Blissett.

Going forward, GM, he added, will “work closely with the state and national governments to secure the required approvals so that GWM can elevate production at the plant even further and maintain Talegaon’s status as a vibrant vehicle manufacturing region”.

GM will provide a separation package and transition support for impacted employees, as well as an orderly transition for partners. The transaction is expected to close in the second half of 2020. However, Chevrolet, he added, will continue to honour all warranties and provide aftersales support, including ongoing service and parts requirements for existing customers in India.


Source link

Leave a Reply