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Chevrolet to pull out of India, South Africa


The decision will impact around 400 employees of GM India engaged in domestic sales and after sales activities.

The company has also left four other foreign markets, including the Europe and Russian Federation.

"We are not giving up the benefits India offers as a local cost manufacturing hub with an excellent supplier base, which is extremely competitive", said Stefan Jacoby, GM's President for global operations.

"Globally, we are now in the right markets to drive profitability, strengthen our business performance and capitalize on growth opportunities for the long term".

India has just announced that they will stop local sales of their cars by the end of this year.

In April, it had announced that it will stop production at its Halol facility.

"After a thorough assessment of our South African operations, we believe it is best for Isuzu to integrate our light commercial vehicle manufacturing operations into its African business", GM's vice-president of its worldwide operations, Stefan Jacoby, said in a statement on Thursday morning. However, the move to cease domestic sales follows a review of future product plans for India.

By the time they did start speaking about working on a new platform for emerging markets, things had gone down an abyss in India and one of the world's largest carmakers was relegated to a market share of under 1%!

Jacoby said the required investment to maintain manufacturing in South Africa could deliver better returns if invested elsewhere. The company had informed employees of General Motors India about the decision.

"Recent actions by General Motors demonstrate clearly it is not the GM of old", said Michelle Krebs, executive analyst for Autotrader. Talegaon production capacity now stands at around 1.3 lakh vehicles a year which can be further expanded to 1.7 lakh units. But for India, GEM was still too pricey a technology since it has been designed under GM's global vehicle safety, performance and other standards. However, there will be around 400 layoffs and the company will give its employees a severance package. "From 2018, Isuzu dealers will provide aftersales and service support to Chevrolet and Opel customers until the details of our talks with PSA have been finalised", the company. He also ruled out GM coming back to India with either Chevrolet or any other brand from the company's stable.

"GM India's export business has tripled over the past year", Kazem said. Vehicles made at the firm's plant near Mumbai will be exported primarily to Mexico, South America and Central America, it said. The Halol plant was GM's first plant in India which was set up in June 1996. "The company has already shut down the plant and has indicated that they will meet with us to discuss the latest developments, but that is after the fact", says Jim.

Senior officials from General Motors have arrived in India from Detroit and Singapore. Chevrolet is the sixth most exported passenger vehicle out of India. It was discontinued in 1954. $838 million in 2016. Profits from China put that unit in the black, but the rest of those markets, including India, South Africa, the Middle East and several Asian countries, lost a combined? In 2009, GM turned its Indian operation into a 50-50 venture with its main partner in China, Shanghai Automotive Industry Corporation (SAIC).

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