General Motors Stops Production At Halol Plant

President and Managing Director, General Motors India, Kaher Kazem states that the company was aware of the impact on employees of Halol manufacturing facility. The company has ensured that the workers supported with additional measures.

Kazem said, "We have committed to firm them through this necessary transition with generous separation payments or the option of continuity of employment at Talegaon."

In 2015, General Motors announced that it would halt production at the Halol manufacturing plant. The move of shutting down the plant affected around 1,100 employees.

The Halol manufacturing facility has a capacity of producing 1.1 lakh units annually. Previously it was planned to close down the plant by mid-2016. GM was involved in talks with Chinese firm SAIC Motor Corporation to sell the plant.

A term sheet was also signed to evaluate the deal . But the Chinese auto major stated that the takeover of the plant is subjected to government approvals and labour settlement by General Motors.

In 2015 GM announced its plans to invest 1 billion dollar to boost manufacturing and introduce ten locally produced models in India. But the company failed to turn its fortunes in the country. And all the investments are put on hold.