Thursday, January 21, 2010

General Motors India to use third shift at its Halol plant by 2011

General Motors India is looking to kick off a third shift at the Halol plant near Ahmedabad to cater to the additional production requirement after the launch of a light commercial vehicle (LCV) in 2011-end.
 
It was reported earlier that General Motors India, along with its joint venture partner Shanghai Automotive Industries Corporation (SAIC), will start selling LCVs by the end of next year and passenger cars and multi-utility vehicles from SAIC's portfolio by 2012. The company will make additional investments at the Halol plant in Gujarat, which currently operates in two shifts. In commercial vehicle space, GM India is looking at three versions. They are the small vans, pick-up vans and multi-purpose vehicles from the SAIC product line up and would be in the one-tonne category. It is to be mentioned that in China, GM manufactures passenger cars with SAIC, including the Buick and Chevrolet brands. 

"We get a choice of separate products now from our joint venture in China with SAIC. We shall pick up LCVs from that portfolio and bring in three varieties of these vehicles to India at Halol," Slym said on the sidelines of Chevrolet Beat in Kolkata. He added, "Our facility at Halol, that has a capacity of 85,000 units, is capable of producing LCVs, for which we are planning to start manufacturing in 2011. It's very exciting as its going to be a whole new segment for us to begin with here." He also mentioned, "The one-tonne trucks will be made at the Halol plant, which will continue to manufacture GM's current portfolio of passenger cars, too. We have a flexible production line and the Halol plant will be able to produce both the LCVs and the current passenger cars," as revealed by Slym, adding, "Introduction of LCVs will open new avenues for the local suppliers too as we aim to localise 90 per cent of the manufacturing." 

When a newspaper reporter queried as to how much headcount will the third shift generate, Slym said, "The Gujarat based facility of GM at Halol started operating in two shifts in December last (2009). Currently, we have 1,350 people working at the Halol facility that includes non-production staff as well. Roughly, 500 people could be added when a third shift will be started. As for the investment, we plan to make some modifications at the plant. We will also invest in tooling and equipment. But, we are yet to arrive at exact figures." 

Responding to questions on the negative perception in the market over Chinese products, Slym said they still have nearly two years before any products come. He pointed to the successful image makeover by Japanese and Korean brands to overcome negative perceptions, indicating that GM expects something similar for Chinese goods. 

Incidentally, media reports also claim that GM will look at exporting the excess capacity to Asia Pacific region after the plant commences production. The source said that selling engines to a third party and developing engines for Shanghai Automotive Industries Corporation's (SAIC) light commercial vehicles, are options that the company will consider once the plant is commissioned.

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