The earlier media reports have been confirmed. Great Wall Motors (GWM) and General Motors India have announced an agreement for the sale of the latter’s Talegaon manufacturing facility subject to government and regulatory approvals. The news comes just a few days ahead of the Auto Expo 2020 where Great Wall Motors is set to showcase its Haval range of SUVs and a GWM EV in addition to revealing its India launch plans.
Speaking about the development, Liu Xiangshang, Vice President, Global Strategy, Great Wall Motors, stated that the move underpins the company’s plan to invest in India. He also added that India operations will be an important part of GWM’s global strategy.
Without providing details on the size of investment, GWM has stated that the purchase of Talegaon plant will generate more direct and indirect jobs in addition to promoting local supply chain and R&D industries.
Speaking about the transaction, GM International Operations Senior Vice President Julian Blissett stated that the decision to cease production at the Talegaon facility is based on the American automaker’s global strategy and optimization of its production footprint across the world. GM withdrew its Chevrolet brand from India in 2017 and since then it has been using its Talegaon factory to cater exclusively to export markets. The factory has been producing Chevrolet Beat small car primarily for Latin American markets.
GM also has stated that it will provide a separation package and transition support for all its employees who are affected by the change of ownership. The company also assured an orderly transition for its partners. The whole transaction is expected to be completed by second half of 2020.
The sale of Talegaon plant marks complete withdrawal of General Motors from India. However, the company has announced that it will continue to honor all warranties in addition to providing after sales support (service and spare parts) for its existing customers in the country.
Great Wall Motors is expected to announce the timeline of its India operations at the Auto Expo. With access to brownfield facility, the Chinese SUV specialist would be able to set things in motion in a relatively shorter period of time.