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A Management case study on
GM Halol, Gujarat plant facility
Jay Shah, Marketing enthusiast
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
Issues at GM Halol
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
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
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
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
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
Hope you found it worth reading. Thank you for your time.Drop your suggestions and opinions in the comments.
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