• Agreement subject to necessary government and regulatory approvals
• Great Wall Motors’ investment will provide more local jobs and boost development of the supply chain, R&D and related industries
• Talegaon plant key to Great Wall Motors’ plans to enter India’s domestic vehicle market
Talegaon | India — Great Wall Motors (GWM) and General Motors (GM) today reached an agreement for the sale of GM India’s Talegaon manufacturing facility, subject to requisite government and regulatory approvals.
Under a binding term sheet signed yesterday, the GM India legal entity, which includes the Talegaon facility, will transfer to GWM.
GWM global strategy vice president Mr. Liu Xiangshang said the transaction would underpin the company’s plan to enter and invest in India.
“The Indian market has great potential, rapid economic growth and a good investment environment. Entering the Indian market is an important step for Great Wall Motors’ global strategy,” said Xiangshang.
“It is also an important measure to respond positively to the Indian government’s national strategy of vigorously advocating Make In India, Digital India and a ‘strong focus on clean energy in India’ and building a new India vision.”
“Great Wall Motors’ investment will create more jobs, including direct and indirect employment, further enhancing the skill level in the auto industry; promote the development of the local supply chain, R&D and related industries; and contribute more profits and taxes to the government of India and the government of Maharashtra.”
“Great Wall Motors will officially debut its Haval brand and GWM EV at the Delhi International Auto Show, and launch its Indian market plan.”
GM International Operations senior vice president Julian Blissett said the Talegaon manufacturing facility had delivered excellent vehicles for domestic and export markets. He thanked employees and partners for their outstanding work over many years.
“Since focusing the Talegaon plant on manufacturing for export markets in 2017, GM has been exploring strategic options for the better utilization of the site,” said Blissett.
“Our decision to cease production at Talegaon is based on GM’s global strategy and optimization of our manufacturing footprint around the world.”
“On behalf of GM, I also want to express our gratitude to the government of Maharashtra and the government of India for their supportive partnership ever since we began to make investments and build cars in India. We will work closely with the state and national governments to secure the required approvals so that GWM can elevate production at the plant even further and maintain Talegaon’s status as a vibrant vehicle manufacturing region.”
GM will provide a generous separation package and transition support for impacted employees, as well as an orderly transition for partners. The transaction is expected to close in the second half of 2020.
Chevrolet will continue to honor all warranties and provide aftersales support, including ongoing service and parts requirements for existing customers in India.
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General Motors (NYSE:GM) is a global company committed to delivering safer, better and more sustainable ways for people to get around. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Holden, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, Maven, its personal mobility brand, and Cruise, its autonomous vehicle company, can be found at http://www.gm.com.
Great Wall Motors (601633.SH, 02333.HK) GWM is a world famous SUV and Pickup manufacturer. It was listed on the Hong Kong Stock Exchange in 2003 and the Shanghai Stock Exchange in 2011. It has more than 70 holding subsidiaries and more than 60,000 employees. Up to now, Great Wall Motors has sold more than one million vehicles yearly for four consecutive years. In addition to China, Great Wall Motors has covered more than 60 countries and regions such as Russia, South Africa and Australia, and the overseas network has reached more than 500. More information can be found at www.gwm.com.cn.