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General Motors: When the Great Wall of China trade runs out of time, General Motors finds that the exit from Taregaon will be tougher.

About half a year after deciding to end the business IndiaU.S. car maker General Motors We are still struggling to close the Taregaon factory in the industrial suburb of Pune.

Chevrolet car makers’ worries continue as a term sheet to sell their factories to China Great Wall Motor Due to strict rules governing FDI, the proposal will be postponed for more than two years and will expire on June 30th. To add to that legal agenda Maharashtra Government opposition to the closure of the Taregaon plant was recently upheld by the Bombay High Court.

The High Court General Motors India It challenged Maharashtra’s refusal to apply for the closure of troops in Taregaon.

General Motors’ local forces approached the High Court after the Maharashtra Minister of Labor and authorities under the Industrial Dispute Act rejected an application permitting the company to close its Talegaon manufacturing plant.

“We are pursuing legal options. As mentioned earlier, we are very confident in our legal position,” a General Motors spokesman told ET.

Justice SV Gangapurwara and Justice Vinaijosi’s split bench gives the authorities a clear option to consider their own orders or refer the matter to court while dismissing the petition filed by the car major. I observed that I was there.

“There is no dispute that the authorities have the power to refer the matter to the court for the ruling it made. Therefore, we have been filed by the petitioner to revoke the seized order. There is no merit in the dispute. “The court said in an order proving Maharashtra’s position.

General Motors claimed that while state officials rejected the application for closure, they did not consider the imminent need for closure. The company also argued that it could not force the industrial sector to operate at a loss.

JP Cama, a senior advocate who appeared on behalf of the company, claimed that despite the huge investment, the company suffered significant losses and management believed it impossible to continue its business. As of March 31, 2020, the company’s cumulative loss was over 8,480 chlores.

In this case, General Motors’ employee union opposes the closure of the factory, claiming that so far the terms and conditions signed with future buyers have been curtailed.

At the time of the proceedings, the company had a total of 1,578 full-time staff and approximately 2,000 contract staff. General Motors India signed a term sheet for the relocation of manufacturing facilities with the Great Wall of China in January 2020.

https://economictimes.indiatimes.com/industry/auto/auto-news/as-time-runs-out-on-great-wall-deal-general-motors-finds-exit-from-talegaon-tougher/articleshow/92477648.cms General Motors: When the Great Wall of China trade runs out of time, General Motors finds that the exit from Taregaon will be tougher.

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