General Motors shuts manufacturing ops in Pune factory

General Motors to cease manufacturing operations on December 24: Report

In January this year, Great Wall Motors (GWM) agreed to buy General Motors' (GM) Talegaon manufacturing facility in Maharashtra

In this file photo taken on January 14, 2014 General Motors headquarters in the Renaissance Center is seen in Detroit. Credit: AFP Photo

General Motors India is winding up its manufacturing operations at the Talegaon plant in Maharashtra after failing to get regulatory approvals for its deal with Great Wall Motors.

GM India spokesperson told Business Standard that it submitted an application for the closure of the site. “GM vehicle, powertrain and CKD (completely knocked down) production will cease at the Talegaon manufacturing facility on December 24, 2020,” he said.

Talks were on till late Tuesday evening between the GM management and the workers’ union and the latter also reached out to Maharashtra chief minister Uddhav Thackeray to keep the factory going or find new buyers to prevent job losses, The Financial Express reported.

GM stopped selling in India at the end of 2017 after years of low sales but the Talegaon factory continued to build vehicles for export. The Detroit based carmaker which reportedly employed about 4,000 people at the Maharashtra plant, rolled out the last model on October 31 for export.

In January this year, Great Wall Motors (GWM) had agreed to buy General Motors' (GM) Talegaon facility, subject to requisite government and regulatory approvals. The transaction was expected to close in the second half of 2020. However, the sale was delayed due to border tensions between India and China.

Also read: GM faces unexpected bills as India-China tensions delay sale of India plant

There are about 1,800 salaried and hourly employees at the site and the company will support impacted employees with separation packages and transition support, GM's spokesperson told BS.

Earlier, Reuters reported that if workers didn't agree to the severance offered, GM would need local government clearance to lay off staff. GM had planned to use the expected sale proceeds of $250 million-$300 million to pay off liabilities incurred with its exit from manufacturing in India in what sources had said would have been a "no gain-no loss" situation.

(With agency inputs)