Chevrolet to pull out of India, South Africa

  • Chevrolet to pull out of India, South Africa

Chevrolet to pull out of India, South Africa

Chevrolet, the only brand from GM sold in India will exit the market by end of this year.

Isuzu is also acquiring GM's 57.7% stake in the East Africa market and will stop sales of Chevy there as well.

GM South Africa manufacturing will transition to Isuzu Motors and the Chevrolet brand will be phased out of the Indian and South African market by the end of 2017.

The decision follows GM's decision to sell its European division to French automaker PSA Groupe last month, the automaker's decision to discontinue sales of mainstream Chevrolet models in Europe in 2015, to exit Russian Federation in 2015 and end manufacturing in Australia in 2016.

All service and maintenance plans would be honoured, he added.

132 General Motors dealers in SA will now be absorbed into 90 Isuzu dealers under a new franchise arrangement, and GMSA operations will be transferred to Isuzu.

GM's willingness to back out of hard markets is a radical departure for an automaker that for years was focused on maintaining its position as one of the world's largest automakers. The plant has an annual production capacity of 1,60,000 units.

The company recently sold all of its operations in Europe to French carmaker PSA, the manufacturer of Peugeot and Citroen vehicles. India started its India operations in 1996 and has so far invested over a billion dollar. Around 2,500 employees are posted at its global R&D centre at Bangalore and an equal number is employed in Talegaon plant.

Nicholls noted that GMSA would need to be "right-sized" as it became IMSA.

In South Africa, Isuzu Motors will acquire GM's light commercial vehicle manufacturing. "There was no consultation with the union, and furthermore, the company has not divulged any details about the fate of its employees affected by this restructuring", says Jim. GM said it also plans to "streamline" its regional headquarters in Singapore, which undoubtedly means getting rid of some staff.

It did not comment, however, on the possibility of extending these contracts. The GM Technical Centre-India (GMTC-I) in Bangalore will also remain operational and perform global work for worldwide product development. "Through the review, which began in June 2016, the company determined its greatest opportunity in India to drive shareholder return rests on focusing on exports from India", said GM.

"As the industry continues to change, we are transforming our business, establishing GM as a more focused and disciplined company", GM Chairman and CEO Mary Barra said in a statement according The Detroit News.

The move is part of the USA automaker's restructuring of its global business to focus on the markets with higher returns.

"There are over one thousand employees at GM and five hundred of those are based in the Chevrolet division".

"Isuzu will be taking over operations at GM, but we doubt that they will absorb all the workers who used to work at those plants".

"The market opportunity for GEM has continued to grow", he said.

The next round of discussions would focus on how the newly formed IMSA would be able to derive benefits from government's auto support programme, the Automotive Production and Development Programme.

GM plans to continue to work on the $5 billion GEM programme, which GM is developing with SAIC Motor.