Great Wall Motors To Purchase General Motors India’s Talegaon Plant

Added in: News

After the SAIC motor corp took over GM’s Halol plant to set up operations for brand MG in India, another Chinese auto manufacturer, Great Wall Motors has signed an agreement to purchase the American carmaker’s Talegaon plant, subject to requisite government and regulatory approvals. Under a binding term sheet signed yesterday, the GM India legal entity, which includes the Talegaon facility, will transfer to GWM. Great Wall Motors will officially debut its Haval brand and GWM EV at the Delhi International Auto Show and launch its Indian market plan.

GWM & GM Signing Ceremony

For this transition, 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. Chevrolet will continue to honour all warranties and provide aftersales support, including ongoing service and parts requirements for existing customers in India.

Also Read: MG Motor India To Showcase 14 Products At The Auto Expo 2020

Great Wall Motors Haval H6 rear

GWM Global Strategy Vice President Mr Liu Xiangshang said the transaction would underpin the company’s plan to enter and invest in India. He said, “The Indian market has great potential, rapid economic growth and a good investment environment. Entering the Indian market is an important step for Great Wall Motors’ global strategy. It is also an important measure to respond positively to the Indian government’s national strategy of vigorously advocating Make In India, Digital India and a ‘strong focus on clean energy in India’ and building a new India vision.”

Great Wall Motors Haval H6

He added, “Great Wall Motors’ investment will create more jobs, including direct and indirect employment, further enhancing the skill level in the auto industry; promote the development of the local supply chain, R&D and related industries; and contribute more profits and taxes to the government of India and the government of Maharashtra.”

Great Wall Motors Haval H6 cabin

GM International Operations Senior Vice President Julian Blissett said the Talegaon manufacturing facility had delivered excellent vehicles for domestic and export markets. He thanked employees and partners for their outstanding work over many years. He said, “Since focusing the Talegaon plant on manufacturing for export markets in 2017, GM has been exploring strategic options for the better utilization of the site. Our decision to cease production at Talegaon is based on GM’s global strategy and optimization of our manufacturing footprint around the world. On behalf of GM, I also want to express our gratitude to the government of Maharashtra and the government of India for their supportive partnership ever since we began to make investments and build cars in India. We 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.”

Leave a Reply

Your email address will not be published. Required fields are marked *