GM to stop selling cars in India but not pulling out

GM to stop selling cars in India but not pulling out

GM to stop selling cars in India but not pulling out

Sources, however, said the decision would affect a minimum of 200 employees. This decision, as per the company, is part of a series of actions taken to re-evaluate business performance of its operations globally.

"As the industry continues to change, we are transforming our business, establishing GM as a more focused and disciplined company", GM Chairman and CEO Mary Barra said in a statement. 'We determined that the increased investment required for an extensive and flexible product portfolio would not deliver a leadership position or long-term profitability in the domestic market.' In South Africa, Isuzu will acquire GM's light commercial vehicle manufacturing and GM will cease manufacturing and sales of Chevrolet in the domestic market, subject to local regulatory requirements. General Motors Co.is pulling its Chevrolet brand out of India, South Africa and East Africa by the end of 2017. Its production, however, grew about 16 per cent to 83,368 units most of which were exported.

"We determined that continued or increased investment in manufacturing in South Africa would not provide GM the expected returns of other global investment opportunities", Stefan Jacoby, president of worldwide operations, said in the statement. Since then, auto sales overall in India have slumped, and GM has failed to gain traction against incumbents such as Maruti Suzuki India Ltd.

"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, Jacoby said". Across affected markets, GM is working with employees, their union representatives and local authorities to provide transition support.

In the statement, the company said that the move is aimed at developing the company.

While it is unfortunate that a global automaker like GM has to exit, opportunities certainly exist for global automakers in India, Sharma said.

Talks on airplane laptop ban end with no ban, more talks
A Europe-wide ban could affect well over 3,000 direct flights made every week to the USA , likely causing disruptions. Jenny Burke, a Homeland Security spokeswoman, said no final decision has been made on expanding the restriction.

The company added that GM Technical Centre-India (GMTC-I) in Bengaluru will not be impacted by this announcement.

GM is a small player, however, selling about 29,000 vehicles in India past year, representing market share of less than 1%.

GM said it would continue work at its design and engineering center near Bangalore.

Now, GM plans to stop selling Chevrolet brand vehicles by the end of the year and will produce vehicles only for export at its remaining factory in Talegaon. We recently launched the new Chevrolet Beat hatchback for export to Mexico and Central and South American markets and will launch the Chevrolet Beat sedan later this year for those markets. The Halol plant had about 1100 employees.

The company has confirmed that its Talegaon facility, which is in close proximity to Pune, will remain operational, but only as an export hub. It plans to sell the Halol plant in Gujarat to Chinese joint venture partner SAIC Motor Corp.

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