[Venkatesh]

Hyundai Motor signs term sheet with GM India to acquire Talegaon plant.

[TusharK]

Hyundai is planning to acquire General Motors’ manufacturing unit located at Talegaon, near Pune.



Hyundai Motor India has signed a ‘Term Sheet’ for the potential acquisition of identified assets related to General Motors India. The company has stated that the ‘Definitive Asset Purchase Agreement’ will be signed after the conditions for the acquisition are fulfilled and following regulatory approvals from relevant Government authorities and stakeholders.

Production at General Motors’ Talegaon plant ceased back in 2020 after the company decided to pull out of the Indian market. Since then, the American carmaker has been exploring opportunities for the sale of its assets in the country.

Earlier, GM had signed an agreement with China-based Great Wall Motors for the sale of its Talegaon plant. However, the deal failed to reach fruition.

Link to Team-BHP News

[saisree]

Wonderful news. Creates Jobs.

This plant was eyed by Mahindra, JSW Steel, Great Wall Motors and many more. However, Hyundai creates more confidence that this plant will be bought and set to operations.

[amtak]

Indeed a welcome news to the people around the plant. A lot of new housing and alternate businesses had opened up when GM was there. In absence of a working factory, not only the plant employees were affected, even the surrounding was impacted. I do not hold Korean Twins very highly, but they have won me here. Take a bow, Hyundai.

[pravint]

What is mahindra doing ? They are the ones who needed this plant the most. This was very near from their current plant as well.
Looking at current waiting periods of xuv,scorpion and thar, this should be on top priority.

I feel they are confident(may be overconfident) that customers will stick with them no matter what !

[Adorablejim]

Strategically this plant would have been more suitable for Mahindra. With waiting period running close to an year for their smashit models and with the Thar 5 door being introduced very soon, this plant would have been a feather in their cap. They had plans to acquire this GM plant at Talegaon but as we have seen from the past, Mahindra is neither good at negotiations nor good at any kind of joint ventures.

The surprise is why did Hyundai choose the GM plant in Maharashtra when the Ford plant at Maraimalai Nagar, Chennai is idling away which is not even 30 Kms away from the current Hyundai plant at Irrugattukottai.

At Talegaon they need to start all over again including setting up a vendor park while it would have been more easy for them to gain access to the Ford plant in Chennai where Hyundai already has a very strong vendor park. Moreover, the Ford plant was functioning until very recently and it would have been a more easy integration than acquiring a plant which has been idle for quite some time.

Unsoo Kim and team will definitely be having something very concrete about their future plans and hence their move to take possession of the GM plant at Talegaon.

Now, what would be the future of the Ford plant in Chennai? Even KIA is on the look out for expanding their capacity and they have made it clear that it would be out of Andhra Pradesh. Mahindra can definitely look into acquiring the Chennai Ford plant as they have a strong presence in Chennai with their Research Valley at Chengalpattu.

[narayans80]

Originally Posted by Adorablejim

The surprise is why did Hyundai choose the GM plant in Maharashtra when the Ford plant at Maraimalai Nagar, Chennai is idling away which is not even 30 Kms away from the current Hyundai plant at Irrugattukottai.

My thoughts as well. Why would Hyundai invest so far away from their supplier ecosystem.

Now, what would be the future of the Ford plant in Chennai?

BYD is in talks to acquire the Ford MM Nagar plant

[m8002?]

Originally Posted by narayans80

My thoughts as well. Why would Hyundai invest so far away from their supplier ecosystem.

Me thinks, its to reduce the long term risk of unionization, local govt. etc. Even if one site is hit my strikes, state govt. diktat, the other site can function.

If everything is in one state/site, the impact will be more.

[Adorablejim]

Originally Posted by narayans80

My thoughts as well. Why would Hyundai invest so far away from their supplier ecosystem.



BYD is in talks to acquire the Ford MM Nagar plant

FORD has been in talks with BYD Globally to sell its Saarlouis plant in Germany and the Ford Chennai plant sale could be a part of the global deal. However, the biggest obstacle will be the regulation hurdles by our Indian Govenment on Chinese companies as Great Wall Motors could not get the necessary clearances. The other side is BYD might get through all these barriers as they have been operating in India for the last 15 years.

Now coming to FORD. Really don't understand what is their strategy globally. Cannot even imagine a company taking decision to stop one of their most popular model in Europe - the FOCUS.

[vvivek85]

Originally Posted by Adorablejim

The surprise is why did Hyundai choose the GM plant in Maharashtra when the Ford plant at Maraimalai Nagar, Chennai is idling away which is not even 30 Kms away from the current Hyundai plant at Irrugattukottai.

One possibility that I could think of is BCP, having both plants in the same city is not always advisable and there will be always a risk associated with the same.

[Adorablejim]

Originally Posted by vvivek85

One possibility that I could think of is BCP, having both plants in the same city is not always advisable and there will be always a risk associated with the same.

Makes sense when it comes to BCP.

However, it remains to be seen how the cars which will be eventually manufactured at the GM plant will be priced. Cost of the model that comes out from the Talegaon plant will be directly proportional to the total investment Hyundai makes not only for acquiring the unit but also for readying it for mass production. Hence one can safely assume that the refurbished plant will be used for its future models or next generation of the current models.

One wild thought that comes to my mind is, Hyundai may debut the GENESIS brand with this plant apart from other mass produced cars.

[qaqa]

Hope this is not just a ploy to "block" the plant from Mahindra..Idle speculation of course!

[ToThePoint]

Right @m8002? and @vvivek85

Chennai is more prone to flooding.

[Livnletcarsliv]

Originally Posted by Adorablejim

Now, what would be the future of the Ford plant in Chennai?

This plant is already bought by Tata.

This is good move by Hyundai while ideally M&M should have bought this. Let's wait and watch.

[AutoDowntowner]

Indeed a good news. The deal should go thru quickly now. There is already a good automotive T1, T2 supplier base, especially Koreans.