"Globally, we are now in the right markets to drive profitability, strengthen our business performance and capitalize on growth opportunities for the long term".
The decision was announced as part of a series of restructuring actions from the Detroit automaker on Thursday, and marks a significant blow to India's strategy of encouraging domestic manufacturing.
Toyota, Ford, Honda Motor and the Renault SA-Nissan Motor venture all have sizable sales operations in India, but all trail local companies in the race for volume. 'After a thorough assessment of our South African operations, we believe it is best for Isuzu to integrate our light commercial vehicle manufacturing operations into its African business, ' said Jacoby.
The US-based company's Talegaon plant will now concentrate on production only for export markets, said the company in conference call with media.More news: McLaren F1 team felt disbelief over latest Alonso engine faliure
Last month the company had stopped production at the Halol plant, a move that affected around 1,100 employees.
'The market opportunity for GEM has continued to grow, ' he said.
GM is also pulling out entirely from South Africa, with plans to sell its relatively small manufacturing operation there to Isuzu Motors Ltd. Isuzu will also purchase GM's Vehicle Conversion and Distribution Centre and assume control of the Parts Distribution Centre. General Motors Co.is pulling its Chevrolet brand out of India, South Africa and East Africa by the end of 2017.
Earlier this spring GM exited the European market, selling its Opel and Vauxhall brands to PSA Group.More news: Ottawa Senators' Erik Karlsson leaves with injury; Rangers tie series
As regards support to existing GM India and Chevrolet auto owners in India, Kazem said: "We will support our affected customers, employees, dealers and suppliers". Isuzu agreed in February to buy out GM's 57.7 percent stake in a joint venture in Kenya. GM will withdraw sales of the Chevrolet brand from the market.
GM entered the Indian market in 1996, offering over the years such Chevrolet models as the Spark, the Beat, the Sail, the Sail Hatchback, the Cruze, the Enjoy, the Tavera and the Captiva. This will deliver greater organizational efficiencies while leveraging global resources and in-market expertise.
GM India informed employees of the decision today.
GM expects to book a charge of about $500 million during the current quarter to cover the moves in India and South Africa. # # # Forward Looking Statements: This document may include forward-looking statements. It is also being reported that the American carmaker is in talks with Mahindra for forging a service agreement where the latter will be responsible for providing service to GM vehicles during the next couple of years. A further list and description of these risks, uncertainties and other factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, and our subsequent filings with the Securities and Exchange Commission.More news: North Korea could be behind ransomware attack, say experts
- 'Situation grave', Pakistan may hang Jadhav soon: India at ICJ
- Melissa McCarthy seen on Spicer's motorized podium in an NYC street
- Laurent Koscielny will need daily treatment on Achilles until end of career
- Arsenal playing in Europa League would not be so bad, insists Cech
- Huddersfield Town into play-off final after penalty shootout win
- Joel Embiid says 76ers gearing up to beat Cavaliers, LeBron James
- Exactly How Kylie Jenner Gets Those Perfect Lip Kit Swatches
- Codemasters announces F1 2017 game release date, classic cars
- French president's Cabinet mixes old and new, left and right
- Trump willing to use engagement on North Korea crisis: South Korea envoy