The Great Wall of China will buy the GM plant in Talegaon
CHENNAI: The leading Chinese automotive Great Wall Motors (GWM) will acquire Talegaon's manufacturing facilities from General engines (GM) The factory will be used by GWM for an Indian debut. The vice president of GWM (global strategy), Liu Xiangshang, said the transaction would support the company's plan to enter and invest in India. “The Indian market has great potential, rapid economic growth and a good investment environment. Entering the Indian market is an important step for GWM's global strategy, Liu said.
A company statement said: “Under a binding terms sheet, the legal entity of GM India, which includes the installation of Talegaon, will be transferred to GWM. GWM will officially present its Haval brand and GWM EV at the Delhi International Motor Show, and launch its Indian market plan.
The other Indian plant of GM India in Halol has been acquired by MG Motor India, which is owned by another major Chinese: SAIC. “Since the Talegaon plant focused on manufacturing for export markets in 2017, GM has been exploring strategic options for better use of the site. Our decision to cease production at Talegaon is based on GM's global strategy and the optimization of our manufacturing footprint worldwide, said GM's senior vice president (international operations) Julian Blissett.
In the future, GM, he added, will work closely with state and national governments to ensure the approvals required so that GWM can further raise production at the plant and maintain Talegaon status as a vibrant vehicle manufacturing region.
GM will provide a separation and transition support package for affected employees, as well as an orderly transition for partners. The transaction is expected to close in the second half of 2020. However, Chevrolet, he added, will continue to comply with all warranties and provide after-sales support, including service requirements and ongoing parts for existing customers in India.