SAIC motor of China to buy GM India's plant
What's the story
SAIC Motors, a Chinese auto-major is planning to purchase General Motors India's (GMI) Halol manufacturing unit located in Gujarat. The Halol factory of GMI produces Tavera, Cruz sedan and Enjoy MUV, which SAIC will continue to produce for GMI on a contractual basis. GM India, yet to post profit in 2 decades, will now concentrate on its Talegaon manufacturing unit in Pune.
SAIC
About SAIC motors
SAIC Motor Corporation Limited, formerly Shanghai Automotive Industrial Corporation, is the largest automotive company in China with annual revenues of around $102 billion (2014). It is a state owned company with its headquarters in Shanghai, China and sold around 5.62 million vehicles in 2014. SAIC, a fortune 100 company, had bailed out General Motors India during the 2010 bankruptcy it faced in the US.
GM
About General Motors India
General Motors (GM) India began its India operations in 1996 and offers its products under the brand Chevrolet. GM has its headquarters in Gurgaon and it operates 2 manufacturing units - Halol (Gujarat) and Talegaon (Mahrashtra) with a cumulative capacity of 3 lakh vehicles per annum. Its major products include Beat, Tavera, Cruze, Spark, etc.
Information
SAIC buys GM India shares
SAIC purchased 50% shares of GM India from its parent company General Motors in December 2009, ahead of its 2010 bankruptcy filing, to launch a series of vehicles including Sail using SAIC's platform.
17 Oct 2012
GM buys back SAIC share in GM India
In 2012, General Motors (GM) had bought back 43% shares in General Motors India (GMI) from SAIC which had 50% shares in GMI. The company had not revealed the amount for which it had bought back the shares. General Motors would now have 93% shares post this rejig and SAIC would have 7% shares remaining in GM India.
25 Jan 2016
GM India to end Halol operation by Jul'16
GM India is likely to wind up operations in its Halol manufacturing unit by July'16. The Halol plant, located 50 km from Vadodra in Gujarat has a capacity to produce about 1.1lakh vehicles per annum and employs about 1100 workers, many of whom may be retained post rejig. SAIC, however, may sell the remaining shares in GM India after obtaining control of the plant.
Information
Historical landmark
If the deal between GM India and SAIC goes through, this will be the first time that a Chinese auto company will be manufacturing vehicles in Inda.