"They acted unilaterally and did not inform the union of this decision", Jim said. The company said it expects to incur a one-time charge of approximately US$500 million as a result of the restructuring.
The company has also left four other foreign markets, including the Europe and Russian Federation.
In an interview with the news agency, GM President Dan Ammann explained that the company's plans to exit unprofitable markets - a year ago GM's global business lost about $800 million - formed part of its strategy to better capture growth opportunities in more prosperous regions where the company is already a market leader. It would also not help us achieve a leadership position or compelling, long-term profitability in the domestic market. Its production, however, grew about 16 per cent to 83,368 units most of which were exported. It is selling a plant in South Africa to Isuzu Motors. The company still persisted with these products instead of developing cars for India. At least 1,000 workers are based at GM and the vast majority are Numsa members, Jim said. Although GM is notching record profits on strong sales in the US and China, Mr. Ammann said the company still operates "in a world of finite resources".
As General Motors moved to consolidate Indian manufacturing at its Talegaon Assembly Plant, the company ceased manufacturing at its Halol Assembly Plant on April 28, 2017.
Numsa general secretary Irvin Jim said GM had informed members at a general meeting that it was withdrawing from the South African market. The company's Technical Centre-India (GMTC-I) in Bengaluru will not be impacted by the latest announcement and will continue to work for GM global. However, there will be around 400 layoffs and the company will give its employees a severance package.
"From 2018, Isuzu dealers will provide aftersales and service support to Chevrolet and Opel customers until the details of our discussions with PSA have been finalised". GM India exports to Mexico, Central and South America. Last month the company had stopped production at the Halol plant, a move that affected around 1,100 employees.
A subsidiary of China's top carmaker SAIC Motor Corp plans to acquire certain General Motors manufacturing assets in India, a filing with the country's competition.
General Motors has announced that it is transforming its business globally. Presently the company sells the Tavera, Cruze, Enjoy, Beat, Sail twins and the Trailblazer SUV in India. It was discontinued in 1954.
One could argue that India is a fiercely competitive market for automakers and the price-sensitivity here doesn't leave much room for brand loyalty among consumers. Since then, auto sales overall in India have slumped, and GM has failed to gain traction against incumbents such as Maruti Suzuki India Ltd. However, the U.S. auto major became majority partner by buying 43 per cent from SAIC in 2012.