Wednesday, August 27, 2025
spot_img

General Motors warns Maharashtra’s move to block its exit could hit investment

spot_img
- Advertisement -

An Indian state’s move to block General Motors (GM) from shutting a plant and exiting the country defies the state’s business friendly image and sends a “concerning message” to potential future investors, the U.S. automaker said on Friday.

GM’s comments came after authorities in Maharashtra earlier this week rejected the automaker’s application to cease operations at its plant in the western Indian state amid protests by workers who demanded GM continue production or keep them on the payroll indefinitely, according to local media.

The decision runs counter to Maharashtra’s business-friendly reputation, a GM spokesman said in a statement. “It sends a concerning message to any potential future investors who want to bring jobs and investment to the state.”

GM stopped selling cars in India, the world’s second most populous nation, at the end of 2017 after years of low sales. It sold one of its two factories in the country to China’s SAIC Motor Corp and continued to build vehicles for export at its second plant until Dec. 24.

In January 2020, it agreed to sell its second factory in the state’s Talegaon district to Chinese automaker Great Wall Motor Co, but tensions between India and China have delayed completion of that deal.

GM said it planned to seek a reversal of the state’s order as soon as possible.

“Effectively, the state’s decision amounts to a requirement that GM either produce vehicles for which there are no customer orders, or pay workers indefinitely for doing no work. We reject both suggestions,” the spokesman said, adding production would not resume.

GM is offering higher than the statutory severance pay to its roughly 1,500 workers at the plant, amounting to nearly two years of salary and is willing to negotiate further, said a source with knowledge of the matter.

spot_img

Editorial

Why TCS Deferred FY25 Salary Hike: Better Hike Ahead?

TCS had initially announced its annual salary hike during...

Deloitte, PWC, EY, KPMG to Hire 1 Lakh People in India in FY25

According to estimates from top company officials and industry...

Higher EPS Pension Application Stuck: A Step-by-Step Guide to Fix

Nearly 97,640 Provident Fund (PF) members and pensioners under...

Employee Benefits at India’s Big 4 Firms Deloitte, PwC , EY, KPMG

The Big 4 firms; Deloitte, PwC (PricewaterhouseCoopers), EY (Ernst...

TCS Announces 4-8% Salary Hike for FY25, Lowest in Last 4 Years

Tata Consultancy Services (TCS), India's largest IT services provider,...

Must Read

Strategic Synergy: Balancing AI and EI in HR for Org Excellence

In the swiftly transforming landscape of HR, the integration...

Enhancing Employee Experience in the era of Change and Disruption

In a rapidly changing business and technology environment, companies...

No income tax up to Rs 7.27 lakh per annum: Finance Minister

Union Finance Minister Nirmala Sitharaman lists out steps taken...

Samsung Workers’ Strike for Fair Wages in Tamil Nadu

In a significant labor dispute that has captured attention,...

Bharti Axa’s Paramjit Singh Nayyar joins Hero Housing Finance as CHRO

Former Chief HR Officer of Bharti AXA General Insurance,...

Tata Trusts CEO N Srinath to retire

India's oldest, non-sectarian philanthropic organization, Tata Trusts has announced changes...

Odisha Joins Bihar and Kerala by Announcing Menstrual Leave

The Odisha government has announced a new policy granting...

Panasonic Life Solutions to set up a new manufacturing facility in Andhra Pradesh

Panasonic Life Solutions to set up a new manufacturing...

Related Articles

SightsIn Plus
SightsIn Plushttps://sightsinplus.com/
SightsIn Plus is an India’s leading high-quality people-focused monthly HR Magazine and provides up-to-date HR News, Leadership Announcements, Best HR Practices and Insights by Global CHROs, CEOs, HR Advisors, Business Managers and HR Heads on topics of interest to HR professionals. To subscribe SightsIn Plus, HR Magazine please visit- https://sightsinplus.com/subscribe/