General Motors to shut Talegaon plant, render 1,800 jobless

The shop floor workers will keep getting their salaries from General Motors, India until January 25

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The last functioning factory of General Motors in India will close its shutters on December 24, as relations between India and China continue to be tense. At least 1,800 employees draw salary and hourly wages by working at the Talegaon plant, in Maharashtra.

General Motors, the American automobile parts manufacturer had begun its India operations in 1996 and closing of this factory will makr the end of General Motors in India. The second plant at Halol, Gujarat, had already been sold about three years back, to China’s State Administration for Industry and Commerce (SAIC). Currently, MG Motors is located there, and SAIC is using it for its manufacturing purposes.

The Company had wanted to sell its last factory in Maharashtra for Rs 2,000 crores, to Great Wall Motors, the largest SUV makers in China, but India is yet to clear the deal, which was signed in January 2020. According to the schedule, the transaction was supposed to be carried out in the second half of the year.

However, in June 2020, at least 20 Indian soldiers were killed in an encounter with the Chinese army, a wedge was drive. Now the sale of the factory to China has been put on hold. Some regulatory approval is still required.

The shop floor workers will keep getting their salaries from General Motors, India until January 25. The affected employees will receive compensations in the form of separation packages and transition support too.

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