Reuters reports that General Motors is involved in discussions with China’s leading automaker SAIC Motor Corp to sell off some of its manufacturing facilities in India.
According to documentation filed with the Competition Commission of India, the assets will be acquired by a newly-established Indian subsidiary of SAIC. As part of the arrangement, GM also intends to purchase SAIC’s 9.2 percent ownership stake in SAIC General Motors Investment, a joint venture the two companies set up in 2009.
Through a statement, GM indicated that discussions with SAIC are moving favorably on the sale of its Halol plant in the state of Gurarat, with the two automakers attempting to secure the required approvals.
In 2015, GM announced plans to consolidate production of its two Indian plans by mid-2016. The company’s Halol manufacturing facility has an annual production capacity of 110,000 vehicles while a plant in Talegaon can manufacture 170,000 units.
GM said in July of 2016 that it was reconsidering a $1 billion investment in its Indian operations and delaying any further development of a new platform for the market.
Read full article at: Reuters »