Sunday, August 14, 2022

Chinese automaker GWM closes shop

The move by GWM came on the heels of US automaker General Motors (GM) calling off the sale of its shuttered Talegaon plant in Pune to GWM as their agreement, which was extended twice, expired on June 30, 2022

PRAVASISAMWAD.COM

Chinese SUV maker Great Wall Motors (GWM) has shut shop and fired 11 Indian employees from its organisation. The company had initially proposed an investment of USD 1 billion (INR 7000 crore) and had plans to start manufacturing in 2021.

“All the 11 Indian employees were sent a meeting request and given the pink slip… The employees were given three-months advance salary from July to September. They have also been paid variable pay for six months,” according to a source, reported ET. The move by GWM came on the heels of US automaker General Motors (GM) calling off the sale of its shuttered Talegaon plant in Pune to GWM as their agreement, which was extended twice, expired on June 30, 2022.

In the last Auto Expo held in 2020, GWM showcased a very strong product lineup of SUVs.It also announced the start of manufacturing and business in India by 2021

In January 2020, GM had struck a deal to sell the plant to GWM, with the Chinese SUV-maker expected to pay up to USD 300 million as part of a broader plan to invest USD 1 billion to establish a presence in India’s growing car market. However, with a tougher stance by the Indian government towards investments from China, the sale did not go as planned. GWM failed to obtain regulatory approvals following the new FDI regulations that came into effect from April 2020.

In the last Auto Expo held in 2020, GWM showcased a very strong product lineup of SUVs.It also announced the start of manufacturing and business in India by 2021.

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