GM had announced factory closure from December 24 soon after the deal to sell the plant to Chinese automotive organization Great Wall Motors (GWM) could not be completed.
Auto maker General Motors has no plans to manufacture or reinvest in at the Talegaon manufacturing facility. Work on completion of the sale of the website, announced in January 2020, is pending FDI approval and the organization was not taking into consideration option alternatives for the website, George Svigos, director of communications, GM International, stated in a statement issued on Friday concerning the Talegaon plant. This statement was in response to the Maharashtra state government selection to reject the GM application for shutting down the plant.
General Motors plans to move for the reversal of this order. “The state’s decision amounts to a requirement that GM either produce vehicles for which there are no customer orders, or pay workers indefinitely for doing no work. We reject both suggestions,” Svigos stated. “General Motors’ plan in relation to the Talegaon facility is unchanged. GM production has ceased and there will be no future GM production at the site. GM took the decision to close the site because there is no demand in our export markets for the vehicle previously made in Talegaon.” he stated.
The organization says it is committed to providing a fair separation package to the workforce. The plant has 1,578 complete-time workers and 2,000 contract workers. The GM union has gone to court against the plant closure.
GM had announced factory closure from December 24 soon after the deal to sell the plant to Chinese automotive organization Great Wall Motors (GWM) could not be completed. GM had exited from the domestic marketplace in 2017 and was working with the plant for exports.
GM had signed an agreement with Great Wall Motors in January 2020, which was to be completed by finish of the year. GWM had signed a MoU with the Maharashtra government for investing about $1 billion but this was place on hold in June 2020. The deal will need to have approval from the central government, which has not come by way of.
The GM plant spread across 300 acres had capacity to create 1.65 lakh automobiles and an engine plant to make 1.6 lakh engines.
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