This is a brief case study on the GM's Halol plant facility. GMIPL operates vehicle manufacturing plants in Halol, Gujarat and Talegaon Dabhade, Maharashtra, It maintains headquarters in Halol and Gurgaon and a large technical center in Bangalore. Its Halol and Talegaon Dabhade manufacturing plants have a combined production capacity of 225,000 vehicles annually. General Motors began doing business in India in 1928, assembling Chevrolet cars, trucks and buses, but ceased its assembly operations in 1954. GM continued with tie-ups with Hindustan Motors to build Bedford trucks, Vauxhall cars, Allison Transmissions and off-road equipment. In 1994 GMIPL was formed as a joint venture, owned 50 percent by Hindustan Motors and 50 percent by General Motors, to produce and sell Opel branded vehicles. GM bought out the Hindustan Motors interest in 1999. GMIPL continued to produce Opel cars at the Halol facility until 2003, when it started production of Chevrolet vehicles at that location.

1. A Management case study on
GM Halol, Gujarat plant facility
Jay Shah, Marketing enthusiast

2. History of GM Halol
•Setup in the year 1996
•Covering 172 acres
•Installed capacity to manufacture 1,10,000 units per annum
•Direct employment to 1,100 employees at the plant
•GM Headquarters till 2000 before shifting to Gurgaon
•Produced Opel cars till 2003 and then replaced by Chevrolet cars
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3. Issues at GM Halol
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Labor strikes instances in 2010, 2011 and 2014
Poor performance of the plant
Failed to create a developed environment like Tata in Sanad
Vague understanding of the local market

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Possible reasons for shutdown
a. Labor issues
b. Sluggish Indian Automobile market in recent years
c. Strategic management decision
“Consolidating our manufacturing in a single location in
India will support the long-term sustainability of our
business in a challenging emerging market. This is not a
decision that we are making lightly and we are
committed to treating those impacted respectfully.”
Arvind Saxena,
GM India President & MD

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Consequences of shutdown
The move will directly affect 1,100 employees of Halol
Automobile business environmental changes in Gujarat region
Decreased GM’s annual production to 220,000 units from
282,000 (combined capacity of Halol and Talegaon)
$1bn investment in GM Talegaon plant, Maharashtra
Fresh jobs creation at GM Talegaon plant, Maharashtra
 Launch of 10 new models under the Chevrolet brand in the next
five years

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Alternative solutions
A. For the employees:
i. To apply at the GM Talegaon plant for job
ii. To apply at some other companies
iii. To start a business of their knowledge
B. For GM:
i. To keep the Halol plant as a mother-warehouse
ii. To sell it to some other automobile player
iii. To wait for the market’s response

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Challenges for GM
•Question mark on the success or failure of the decision
•Development of the GM Talegaon plant for exports
•Future Indian market scenario of the automobile sector
•Resistance from the laborers at GM Halol plant
•Legal obligations

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