General Motors India has finally stopped operations at its Halol facility in Gujarat. The automaker had announced its decision to stop operations at in 2015 and was initially scheduled to stop operations in March 2017. But the company extended the deadline to ensure orderly transition for employees, suppliers and stakeholders. GM will now be operating from the Talegaon facility in Maharashtra.
Speaking about the Halol plant shutting shop, General Motors - President and Managing Director, Kaher Kazem said, "The consolidation of manufacturing at our Talegaon facility is an important milestone for GM India. That said, we are mindful of the impact on our employees at Halol. We have committed to support them through this necessary transition with generous separation payments or the option of continuity of employment at Talegaon."
GM India started operations at Halol producing Opel cars in 1996
In its final stages, the plant accounted of about 650-odd workers, of which 350 employees were transferred to the company's Talegaon facility while the others have found jobs elsewhere. General Motors in a statement said that additional support measures had been put in place for both the employees who opted for the significantly enhanced separation payments and those who will transfer, including tax and financial advice and pre-transfer visits to Talegaon.
Speaking further, Kazem said, "GM India is very grateful for the continued support of the Government of Gujarat throughout our time manufacturing at Halol and through this period of transition. I would like to recognize all our employees for their dedication, professionalism and contributions over the many years of operation and also to our suppliers for their partnership and support."
The Chevrolet Tavera and Cruze were produced at the Halol facility
General Motors' Halol plant commenced operations in 1996 producing Opel cars for the American brand. Since 2003 however, GM shifted to brand Chevrolet in India and the Halol facility produced cars under the American brand ever since. The plant saw its share of highs and lows over the years including the infamous worker strikes and the Tavera emissions scandal, before finally shutting shop today. More recently, there were reports of the Halol plant being purchased by GM's Chinese partner SAIC, but the latter refuted the same calling it rumours.
Located around 50 km from Vadodara in Gujarat, GM had invested about Rs. 1200 crore in this facility that produced the Tavera and Enjoy MPVs as well as the Cruze sedan. The plant had a manufacturing capacity of 127,000 units per per year. GM's exit comes at a time when Gujarat is turning out to be the next major hub for automakers with Ford and Maruti Suzuki having already made huge investments.
GM India is now working to introduce the Chevrolet Beat Essentia subcompact sedan
There have been little signs of improvement for GM in India. The company is now betting on its future models including the new next generation Beat hatchback and Beat Essentia subcompact sedan that just might infuse some new life into the company's operations. Both models will be produced at Talegaon, which has an installed capacity of 160,000 units annually.
