General Motors To Stop Production At Gujarat Plant

General Motors
A General Motors India statement said that the production will cease at Halol plant from April 28.

Chennai, March 7: Gujarat’s first car manufacturing plant, initiated by Carmaker General Motors India on Tuesday confirmed it will terminate the production at its plant in Halol in Gujarat next month and consolidate production at its Talegaon plant in Maharashtra.

A General Motors India statement said that the production will cease at Halol plant from April 28.

“We will support our workers at the Halol plant throughout this transition,” President and Managing Director , General Motors India, Kaher Kazem said in the statement.

“We have in place the options of a significantly enhanced separation package or continuity of employment at our Talegaon plant,” MD added.

Transition support for employees will include financial counseling and tax advice, as well as information and transition support for employees transferring to the Talegaon facility.

The company is working with government authorities and labour unions, as well as impacted employees and suppliers, to ensure an orderly transition.

Kazem said General Motors India continues to work towards the asset-only sale at the Halol site.

JN Singh, Gujarat Chief Secretary, said that “General Motors has decided to wind up their production plant as per their business decision. The Gujarat government has allowed the company to shut down its operation on the assurance that they would resolve all issues related to employees,”

Top most officials from GM recently held a meeting with some senior government officials to discuss the exit modality after the majority of 650-odd workers at the plant not accepting Voluntary Separation Scheme (VSS) offered in 2016, December, which promised 100 days of wages to the employees.

General Motor’s exit from Gujarat has come at a time when the state has emerged as an auto hub with the likes of Tata Motors, Ford India and Honda Motorcycle and Scooter India Pvt Ltd (HMSI) already commissioning their manufacturing plants in the state.

Suzuki Motor Corporation is soon going to starts its plant, while HeroMoto Corp’s two-wheeler facility is under advanced stage of development.

Chinese state-owned car manufacturer, SAIC Motor Corporation Limited is planning to buy manufacturing assets of GM in Gujarat facility.

According to the Competition Commission of India, the joint venture will give the Chinese automaker a secure position in India as the SAIC is now in the process of entering to Indian market.

–With IANS Inputs.