GM India has announced that it would extend production at its Halol assembly plant until March 2017. GM has been trying to sell this facility so that it can undertake all its manufacturing work to its plant in Talegaon, Maharashtra.
GM has also confirmed that it would begin production of the upgraded Tavera at the Halol assembly plant. The upgrades will primarily consist of a new BS IV compliant diesel engine on the Tavera. The company revealed earlier that it would not be launching the Spin MPV and instead would be bringing in five new cars, namely the Trailblazer, Beat, Cruze, Essentia and Beat Activ in the next 24 months in India.
"This move will provide more time to ensure an orderly transition for employees, suppliers and other stakeholders as the company continues to work through options for the facility," said Kaher Kazem, president and managing director, GM India.
He added, "We are exploring a number of options in relation to the Halol site, including its sale. Selling the plant may include contract manufacturing to ensure continuity for the upgraded Chevrolet Tavera."
GM had tried to sell the plant earlier this year, but the Gujarat government rejected that proposal until the American car maker drafted a settlement plan for the 1,100 employees working at the manufacturing unit. China-based SAIC Motor Corp. showed some interest but later scraped the deal as SAIC did not want to take any liabilities regarding the plant's employees.