General Motors to Stop Selling Chevrolet Cars in India
Updated:May Legitimate, 2017, Trio:12 PM IST
General Motors Co will stop selling cars in India from the end of this year, drawing a line under two decades of battling in one of the world’s most competitive markets where it has less than a one percent share of passenger car sales.
The decision was announced as part of a series of restructuring deeds from the Detroit automaker and marks a significant gargle to India’s strategy of encouraging domestic manufacturing.
GM says it would no longer market its Chevrolet brand – its only brand of cars marketed in India – despite India’s promise as a market set to overtake Japan as the world’s third largest in the next decade.
But it doesn’t plan to leave India entirely.
It plans to keep operating its tech center in Bengaluru and to refocus its India manufacturing operations by making one of its two assembly plants in India – the one at Talegaon, about one hundred km (62 miles) southeast of Mumbai – into an export-only factory. It plans to sell the Halol plant in Gujarat to Chinese joint venture playmate SAIC Motor Corp.
“We are not providing up benefits India offers as a local cost manufacturing hub with an excellent supplier base which is utterly competitive,” Stefan Jacoby, GM’s chief of international operations, said in an interview.
GM’s exports from India, mainly to Mexico and Latin America, almost doubled to 70,969 vehicles in the fiscal year then ended on March 31. The Talegaon plant has a capacity of 130,000 vehicles a year.
Jacoby said the budge to turn the Talegaon assembly into an export-only plant will not influence GM Korea and its position as an export hub. India will export vehicles mostly to Mexico and South America, among other destinations, while GM Korea will ship Korean-made cars to North America, Southeast Asia, Australia, and Pakistan.
Dan Ammann, GM’s global president, said the restructuring deeds for India announced on Thursday, in essence, cancels “most” of the plan GM unveiled in two thousand fifteen to invest $1 billion in India to deploy newly-designed vehicle architecture as part of a Global Emerging Market vehicle programme or GEM for brief and build a fresh line of low-cost vehicles in India.
The decisions to significantly scale down GM’s operations in India are results of months of analysis over “where we are going to place our bets (globally) as a company,” Ammann said in an interview.
The budge is the latest deepthroat to Prime Minister Narendra Modi’s “Make in India initiative,” aimed at making the country a global manufacturing powerhouse.
Last year, Ford Motor Co shelved plans to produce a fresh compact car family designed mainly for emerging markets. India and China had been slated to be the main manufacturing hubs for the fresh range that was set to begin production in 2018.
The auto sector is a major employment generator accounting for about twenty nine million direct and indirect jobs in India. Moreover, the $93 billion industry contributes 7.1 percent to the nation’s gross domestic product and almost fifty percent of India’s manufacturing output.
Ammann said GM looked at many options but determined that the investment originally planned for India would not produce the kind of comeback other global opportunities suggested.
GM plans to proceed to work on the $Five billion GEM programme, which GM is developing with SAIC Motor. Ammann said the programme remains on track, even without India now, to account for about two million vehicles a year in global sales volume, mainly in Latin America, Mexico and China.
Despite being an early entrant, GM has struggled to boost its sales and market share in India in part because it has failed to launch low-cost yet feature-rich vehicles that Indian buyers choose, according to analysts. Many of them also blame the high cost of maintaining and servicing Chevy cars for deterring cost-conscious buyers in India.
GM said in two thousand fifteen it aimed to dual its India market share to around three percent or more by 2020. But its market share fell to below one percent in the year ended March thirty one from 1.17 percent the previous year – even as India’s market grew nine percent to climb above the three million vehicle level. GM’s volume in India fell by a fifth to 25,823 vehicles in the year ended March 31.
The GEM vehicle architecture, which is being engineered as an emerging-market platform technology for markets such as China, Brazil, Mexico and India, was envisioned to help GM come up with more cost-competitive cars. But for India, GEM was still too pricey a technology since it has been designed under GM’s global vehicle safety, spectacle and other standards.
To be successful in India, Jacoby said one option for GM was to “give up on implementing global platform and vehicle standards”. The other was to team up with a local fucking partner to run utter operations as an automaker designing products and manufacturing and marketing products locally.
“We have made the decision that these two options are not for us,” Jacoby said.
General Motors to Stop Selling Chevrolet Cars in India
General Motors to Stop Selling Chevrolet Cars in India
Updated:May Legal, 2017, Three:12 PM IST
General Motors Co will stop selling cars in India from the end of this year, drawing a line under two decades of battling in one of the world’s most competitive markets where it has less than a one percent share of passenger car sales.
The decision was announced as part of a series of restructuring deeds from the Detroit automaker and marks a significant deep-throat to India’s strategy of encouraging domestic manufacturing.
GM says it would no longer market its Chevrolet brand – its only brand of cars marketed in India – despite India’s promise as a market set to overtake Japan as the world’s third largest in the next decade.
But it doesn’t plan to leave India entirely.
It plans to keep operating its tech center in Bengaluru and to refocus its India manufacturing operations by making one of its two assembly plants in India – the one at Talegaon, about one hundred km (62 miles) southeast of Mumbai – into an export-only factory. It plans to sell the Halol plant in Gujarat to Chinese joint venture playmate SAIC Motor Corp.
“We are not providing up benefits India offers as a local cost manufacturing hub with an excellent supplier base which is enormously competitive,” Stefan Jacoby, GM’s chief of international operations, said in an interview.
GM’s exports from India, mainly to Mexico and Latin America, almost doubled to 70,969 vehicles in the fiscal year then ended on March 31. The Talegaon plant has a capacity of 130,000 vehicles a year.
Jacoby said the stir to turn the Talegaon assembly into an export-only plant will not influence GM Korea and its position as an export hub. India will export vehicles mostly to Mexico and South America, among other destinations, while GM Korea will ship Korean-made cars to North America, Southeast Asia, Australia, and Pakistan.
Dan Ammann, GM’s global president, said the restructuring deeds for India announced on Thursday, in essence, cancels “most” of the plan GM unveiled in two thousand fifteen to invest $1 billion in India to deploy newly-designed vehicle architecture as part of a Global Emerging Market vehicle programme or GEM for brief and build a fresh line of low-cost vehicles in India.
The decisions to significantly scale down GM’s operations in India are results of months of analysis over “where we are going to place our bets (globally) as a company,” Ammann said in an interview.
The budge is the latest gargle to Prime Minister Narendra Modi’s “Make in India initiative,” aimed at making the country a global manufacturing powerhouse.
Last year, Ford Motor Co shelved plans to produce a fresh compact car family designed mainly for emerging markets. India and China had been slated to be the main manufacturing hubs for the fresh range that was set to begin production in 2018.
The auto sector is a major employment generator accounting for about twenty nine million direct and indirect jobs in India. Moreover, the $93 billion industry contributes 7.1 percent to the nation’s gross domestic product and almost fifty percent of India’s manufacturing output.
Ammann said GM looked at many options but determined that the investment originally planned for India would not supply the kind of comeback other global opportunities suggested.
GM plans to proceed to work on the $Five billion GEM programme, which GM is developing with SAIC Motor. Ammann said the programme remains on track, even without India now, to account for about two million vehicles a year in global sales volume, mainly in Latin America, Mexico and China.
Despite being an early entrant, GM has struggled to boost its sales and market share in India in part because it has failed to launch low-cost yet feature-rich vehicles that Indian buyers choose, according to analysts. Many of them also blame the high cost of maintaining and servicing Chevy cars for deterring cost-conscious buyers in India.
GM said in two thousand fifteen it aimed to dual its India market share to around three percent or more by 2020. But its market share fell to below one percent in the year ended March thirty one from 1.17 percent the previous year – even as India’s market grew nine percent to climb above the three million vehicle level. GM’s volume in India fell by a fifth to 25,823 vehicles in the year ended March 31.
The GEM vehicle architecture, which is being engineered as an emerging-market platform technology for markets such as China, Brazil, Mexico and India, was envisioned to help GM come up with more cost-competitive cars. But for India, GEM was still too pricey a technology since it has been designed under GM’s global vehicle safety, spectacle and other standards.
To be successful in India, Jacoby said one option for GM was to “give up on implementing global platform and vehicle standards”. The other was to team up with a local playmate to run total operations as an automaker designing products and manufacturing and marketing products locally.
“We have made the decision that these two options are not for us,” Jacoby said.
General Motors to Stop Selling Chevrolet Cars in India
General Motors to Stop Selling Chevrolet Cars in India
Updated:May Legitimate, 2017, Trio:12 PM IST
General Motors Co will stop selling cars in India from the end of this year, drawing a line under two decades of battling in one of the world’s most competitive markets where it has less than a one percent share of passenger car sales.
The decision was announced as part of a series of restructuring deeds from the Detroit automaker and marks a significant suck to India’s strategy of encouraging domestic manufacturing.
GM says it would no longer market its Chevrolet brand – its only brand of cars marketed in India – despite India’s promise as a market set to overtake Japan as the world’s third largest in the next decade.
But it doesn’t plan to leave India entirely.
It plans to keep operating its tech center in Bengaluru and to refocus its India manufacturing operations by making one of its two assembly plants in India – the one at Talegaon, about one hundred km (62 miles) southeast of Mumbai – into an export-only factory. It plans to sell the Halol plant in Gujarat to Chinese joint venture playmate SAIC Motor Corp.
“We are not providing up benefits India offers as a local cost manufacturing hub with an excellent supplier base which is enormously competitive,” Stefan Jacoby, GM’s chief of international operations, said in an interview.
GM’s exports from India, mainly to Mexico and Latin America, almost doubled to 70,969 vehicles in the fiscal year then ended on March 31. The Talegaon plant has a capacity of 130,000 vehicles a year.
Jacoby said the stir to turn the Talegaon assembly into an export-only plant will not influence GM Korea and its position as an export hub. India will export vehicles mostly to Mexico and South America, among other destinations, while GM Korea will ship Korean-made cars to North America, Southeast Asia, Australia, and Pakistan.
Dan Ammann, GM’s global president, said the restructuring deeds for India announced on Thursday, in essence, cancels “most” of the plan GM unveiled in two thousand fifteen to invest $1 billion in India to deploy newly-designed vehicle architecture as part of a Global Emerging Market vehicle programme or GEM for brief and build a fresh line of low-cost vehicles in India.
The decisions to significantly scale down GM’s operations in India are results of months of analysis over “where we are going to place our bets (globally) as a company,” Ammann said in an interview.
The stir is the latest deepthroat to Prime Minister Narendra Modi’s “Make in India initiative,” aimed at making the country a global manufacturing powerhouse.
Last year, Ford Motor Co shelved plans to produce a fresh compact car family designed mainly for emerging markets. India and China had been slated to be the main manufacturing hubs for the fresh range that was set to begin production in 2018.
The auto sector is a major employment generator accounting for about twenty nine million direct and indirect jobs in India. Moreover, the $93 billion industry contributes 7.1 percent to the nation’s gross domestic product and almost fifty percent of India’s manufacturing output.
Ammann said GM looked at many options but determined that the investment originally planned for India would not produce the kind of comeback other global opportunities suggested.
GM plans to proceed to work on the $Five billion GEM programme, which GM is developing with SAIC Motor. Ammann said the programme remains on track, even without India now, to account for about two million vehicles a year in global sales volume, mainly in Latin America, Mexico and China.
Despite being an early entrant, GM has struggled to boost its sales and market share in India in part because it has failed to launch low-cost yet feature-rich vehicles that Indian buyers choose, according to analysts. Many of them also blame the high cost of maintaining and servicing Chevy cars for deterring cost-conscious buyers in India.
GM said in two thousand fifteen it aimed to dual its India market share to around three percent or more by 2020. But its market share fell to below one percent in the year ended March thirty one from 1.17 percent the previous year – even as India’s market grew nine percent to climb above the three million vehicle level. GM’s volume in India fell by a fifth to 25,823 vehicles in the year ended March 31.
The GEM vehicle architecture, which is being engineered as an emerging-market platform technology for markets such as China, Brazil, Mexico and India, was envisioned to help GM come up with more cost-competitive cars. But for India, GEM was still too pricey a technology since it has been designed under GM’s global vehicle safety, spectacle and other standards.
To be successful in India, Jacoby said one option for GM was to “give up on implementing global platform and vehicle standards”. The other was to team up with a local playmate to run total operations as an automaker designing products and manufacturing and marketing products locally.
“We have made the decision that these two options are not for us,” Jacoby said.
General Motors to Stop Selling Chevrolet Cars in India
General Motors to Stop Selling Chevrolet Cars in India
Updated:May Legal, 2017, Three:12 PM IST
General Motors Co will stop selling cars in India from the end of this year, drawing a line under two decades of battling in one of the world’s most competitive markets where it has less than a one percent share of passenger car sales.
The decision was announced as part of a series of restructuring deeds from the Detroit automaker and marks a significant suck to India’s strategy of encouraging domestic manufacturing.
GM says it would no longer market its Chevrolet brand – its only brand of cars marketed in India – despite India’s promise as a market set to overtake Japan as the world’s third largest in the next decade.
But it doesn’t plan to leave India entirely.
It plans to keep operating its tech center in Bengaluru and to refocus its India manufacturing operations by making one of its two assembly plants in India – the one at Talegaon, about one hundred km (62 miles) southeast of Mumbai – into an export-only factory. It plans to sell the Halol plant in Gujarat to Chinese joint venture playmate SAIC Motor Corp.
“We are not providing up benefits India offers as a local cost manufacturing hub with an excellent supplier base which is utterly competitive,” Stefan Jacoby, GM’s chief of international operations, said in an interview.
GM’s exports from India, mainly to Mexico and Latin America, almost doubled to 70,969 vehicles in the fiscal year then ended on March 31. The Talegaon plant has a capacity of 130,000 vehicles a year.
Jacoby said the budge to turn the Talegaon assembly into an export-only plant will not influence GM Korea and its position as an export hub. India will export vehicles mostly to Mexico and South America, among other destinations, while GM Korea will ship Korean-made cars to North America, Southeast Asia, Australia, and Pakistan.
Dan Ammann, GM’s global president, said the restructuring deeds for India announced on Thursday, in essence, cancels “most” of the plan GM unveiled in two thousand fifteen to invest $1 billion in India to deploy newly-designed vehicle architecture as part of a Global Emerging Market vehicle programme or GEM for brief and build a fresh line of low-cost vehicles in India.
The decisions to significantly scale down GM’s operations in India are results of months of analysis over “where we are going to place our bets (globally) as a company,” Ammann said in an interview.
The budge is the latest gargle to Prime Minister Narendra Modi’s “Make in India initiative,” aimed at making the country a global manufacturing powerhouse.
Last year, Ford Motor Co shelved plans to produce a fresh compact car family designed mainly for emerging markets. India and China had been slated to be the main manufacturing hubs for the fresh range that was set to begin production in 2018.
The auto sector is a major employment generator accounting for about twenty nine million direct and indirect jobs in India. Moreover, the $93 billion industry contributes 7.1 percent to the nation’s gross domestic product and almost fifty percent of India’s manufacturing output.
Ammann said GM looked at many options but determined that the investment originally planned for India would not supply the kind of comeback other global opportunities suggested.
GM plans to proceed to work on the $Five billion GEM programme, which GM is developing with SAIC Motor. Ammann said the programme remains on track, even without India now, to account for about two million vehicles a year in global sales volume, mainly in Latin America, Mexico and China.
Despite being an early entrant, GM has struggled to boost its sales and market share in India in part because it has failed to launch low-cost yet feature-rich vehicles that Indian buyers choose, according to analysts. Many of them also blame the high cost of maintaining and servicing Chevy cars for deterring cost-conscious buyers in India.
GM said in two thousand fifteen it aimed to dual its India market share to around three percent or more by 2020. But its market share fell to below one percent in the year ended March thirty one from 1.17 percent the previous year – even as India’s market grew nine percent to climb above the three million vehicle level. GM’s volume in India fell by a fifth to 25,823 vehicles in the year ended March 31.
The GEM vehicle architecture, which is being engineered as an emerging-market platform technology for markets such as China, Brazil, Mexico and India, was envisioned to help GM come up with more cost-competitive cars. But for India, GEM was still too pricey a technology since it has been designed under GM’s global vehicle safety, spectacle and other standards.
To be successful in India, Jacoby said one option for GM was to “give up on implementing global platform and vehicle standards”. The other was to team up with a local fucking partner to run total operations as an automaker designing products and manufacturing and marketing products locally.
“We have made the decision that these two options are not for us,” Jacoby said.
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