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General Motors India To Shut Halol Plant By April 2017

General Motors India To Shut Halol Plant By April 2017 expand View Photos

Highlights

  • The deadline to shut down the plant was March 2017
  • 350 regular workers have been transferred to the companys Talegaon plant
  • GM India will expand the Talegaon plant

General Motors' plant in Halol, Gujarat, was its first in India and it was in July 2016 that the company announced that this plant will be shut down by mid-2016. However, it was in July 2016, that the company extended this deadline to March 2017 and now according to reports in The Times Of India, General Motors is set to shut down the Halol plant in April 2017.

The company decided to continue production till March 2017 to ensure an orderly transition for employees, suppliers and other stakeholders. While the exact date of closure has not been decided on yet, it looks like it won't cross the deadline this time around. GM India has made attempts to close the Halol factory in the past, but met with criticism by the Gujarat government, which rejected its proposal last year.

Top officials from the company recently held a meeting with senior government officials to discuss the exit modality after majority of 650-odd workers at the plant not accepting Voluntary Separation Scheme (VSS) offered in December, which promised 100 days of wages to the workers. "GM has decided to close their plant as per their business decision. The state government has allowed the company to wind up its operation on the assurance that they would resolve all issues related to workers," said JN Singh, chief secretary, Gujarat government.

350 regular workers have been transferred to the company's Talegaon factory in Maharashtra while a there are a few who have found jobs elsewhere. GM announced in July 2015 that it would spend $1 billion in expanding its Talegaon factory in Maharashtra. Between the Talegaon and the Halol factories, the company manufactured the Chevrolet Beat, Chevrolet Sail, Chevrolet Cruze, Chevrolet Enjoy and Chevrolet Tavera.

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The company is gearing itself for new launches in India and this plan includes the new-generation Beat as well as a crossover and sub-compact sedan based on the Beat christened Beat Activ and Essentia respectively.

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