General Motors to stop sales in India

General Motors India announced that it will focus on its growing vehicle export manufacturing operations and cease sales in the domestic market by the end of 2017. The decision, which follows a comprehensive review of future product plans for GM India, is part of a series of actions taken by General Motors to address the performance of its operations worldwide. Through the review, which began in June 2016, the company determined its greatest opportunity in India to drive shareholder return rests on focusing on exports from India. This announcement is consistent with GM’s global disciplined allocation of capital and investment in its business around the world designed to generate stronger returns and drive shareholder value. As GM moved to consolidate Indian manufacturing at its Talegaon Assembly Plant, the company ceased manufacturing at its Halol Assembly Plant on April 28, 2017. Negotiations continue on the asset sale at Halol. Kaher Kazem, GM India president and managing director, said the focus for the GM India manufacturing base at Talegaon will be export markets, upcoming export vehicle launches and exploring longer-term strategic options. The company will work closely with affected customers and dealers on a transition plan.

The customer support center will remain open and all warranties and service agreements, as well as ongoing service and parts requirements for all vehicles, will continue to be honored. The GM Technical Centre-India (GMTC-I) in Bengaluru performs global work for GM. This work is not impacted by this announcement. Stefan Jacoby, GM executive vice president and president of GM International, said, “We explored many options, but determined the increased investment originally planned for India would not deliver the returns of other significant global opportunities. It would also not help us achieve a leadership position or compelling, long-term profitability in the domestic market. Difficult as it has been to reach this decision, it is the right outcome to support our global strategy and deliver appropriate returns for our shareholders.”

Leave a Reply

Name (required)

Email (required)

Website

Comments