30.7.15

Halol's horror


General Motors India, the Indian subsidiary of US auto giant General Motors, has decided to close down its manufacturing facility in Halol near Vadodara.
GM began its journey in India in 1996 by setting up the plant near Vadodara.The auto maker was one of the first to put up its facility in Gujarat, which is now being touted as the next auto hub.
The company conveyed to its workers at Halol plant that it will shut down operations at the facility from June 2016. In a communiqué to its workers, the company said that as per new business practice, running two plants is not feasible for the company.
It has also indicated that it may have to lay off some workers while the company is looking for possible buyers to run the plant.
The Halol plant, which witnessed labour unrests in last five years, is spread over 200 acres land and GM has invested over Rs 1,400 crore so far.
It produces Cruze, Enjoy, Tavera, Captiva CBU models and has capacity of making 1,27,000 units per annum. GM introduced its flagship Chevrolet in India from this plant.
Compensation package has also been worked out for those to be laid off.
The letter also states the management wishes that workers continue their work till the time production is stopped in June 2016.
However, the company also announced the investment of $ 1 billion (around Rs.6,300 crore) to double its market share in India by 2020. The investment will be made mainly to expand the capacity of Talegaon plant.

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