GM to shut down manufacturing unit in Gujarat

General Motors (GM) has announced that it will cease its operations in Halol, Gujarat. The American automaker, however, announced plans to invest Rs 6,399 crore in the country, majority of which will go into its plant in Talegaon, Maharashtra. The carmaker was among the first automakers to enter Gujarat in 1996.

The carmaker's decision to move out from Gujarat is opposing to the current trend where most of the industries are making a beeline to Gujarat.

GM's decision to move out of Gujarat will affect 1,100 employees at its plant in Halol that has a total annual manufacturing capacity of 1.1 lakh units annually. The capacity at its plant in Maharashtra is about 1.3 lakh units now, which will be ramped up to 2.20 lakh units. The company said this would lead to creation of about 12,000 jobs and those employed at Halol would be given opportunity to apply for jobs here.

In 2010, 2011 and 2014, General Motors faced labour problems at its Gujarat plant. The protests were against poor working conditions and pay. Shutting down operations at the plant in Gujarat will be complete by the end of 2016.

GM plans to launch 10 new domestically manufactured vehicles in India over the next five years in an attempt to double its market share in the country by 2020.