[ajmat]

General Motors Co. (GM) may completely exit India, with the US-based carmaker in advanced talks with Sajjan Jindal’s JSW Energy Ltd to sell its last remaining car plant in the country for about ₹ 3,500 crore, two people with direct knowledge of the matter said. Senior executives of the diversified JSW Group and GM met in the US earlier this month to discuss the plans, said one of the two people on condition of anonymity.

JSW intends to foray into automobile manufacturing by producing an electric car, code-named JSW car, at GM’s Pune car plant and sell it in the price range of ₹ 12-15 lakh, the person added.

Full report here

It will not be an easy transaction. Most of the teams in the engine and gearbox plant will not really have a role. Makes sense for GM, bit hypocrytical to remain and spend big money in frieght costs to send small cars to South America

[i74js]

Electricity producing company is getting into Electric Vehicles indicates a paradigm shift. The valuation of GM plant is on the higher side, even if they can fetch about 25-2700 Crores for this asset, it will be a big deal for them. The only saving grace at this time is the value of rupee against dollar, which can result in a better INR valuation.

Several of the present plant inventories have gone redundant already and if JSW intends to produce eV, a lot more will go redundant.

Let's see how it moves.

[amtak]

Basically a coffin in the nail for GM India. I was wondering after their last stunt, when would they quit India for good and if this deal goes through, they would just shut their shop for make thousands jobless again. Does anyone has any information of the number of people employed at the Pune plant? Will they be absorbed or they would be laid off?

[GTO]

Originally Posted by ajmat

General Motors Co. (GM) may completely exit India

I had predicted the same back then itself. Mary Barra first came to India and blatantly lied about a "$1 billion" investment, and then when they shut down their Indian sales, GM fibbed about keeping their factory running for exports. That was the funniest thing I'd heard in years.

Slow poison, that's what it was.

Anyway, I've seen this plant and its pretty impressive. Hope JSW or anyone else makes good use of it.

[amtak]

Originally Posted by GTO

Slow poison, that's what it was.

Anyway, I've seen this plant and its pretty impressive. Hope JSW or anyone else makes good use of it.

Plus one to your slow poison note.

I am not too optimistic about the plant once JSW takes over; It might just become one of their sites and will eventually be used for a township or something. Remember what happened with the Daewoo plant?

[srini1785]

GM also had a plant in Halol near Surat. I have been to that plant in 2006 or so when they were making yuva ( anyone recollects?). The employees were deserting their posts in dozens. I don't know what happened to that unit. I heard a rumour that they sold it to a Chinese company.

[shreevishnu]

Originally Posted by srini1785

GM also had a plant in Halol near Surat. I have been to that plant in 2006 or so when they were making yuva ( anyone recollects?). The employees were deserting their posts in dozens. I don't know what happened to that unit. I heard a rumour that they sold it to a Chinese company.

Sold to MG Rover, they will make their first SUV there.

[NiInJa]

GM finally giving up export operations as well ? What a lie they were spreading few years back !

One might see some news in local newspapers regarding workers unrest in this area as soon as the news goes public. Talegaon is politician's playground and if there are going to be some lay-offs due to this acquisition, its definitely going to create a flutter.

[ajmat]

Originally Posted by GTO

I had predicted the same back then itself. Mary Barra first came to India and blatantly lied about a "$1 billion" investment, and then when they shut down their Indian sales, GM fibbed about keeping their factory running for exports.

Anyway, I've seen this plant and its pretty impressive. Hope JSW or anyone else makes good use of it.

$ 1 Billion probably went on writing off the plant and retrenchment

Am sure, GM were holding off till someone offered them a decent price. PSA were interested but the asking price was too much. Alas, there are not many European companies with enough funds to buy the plant or and market demand means existing players do not require more capacity.