Spread the love
NEW DELHI: South Korean carmaker Hyundai finally moved ahead to pump in fresh investments in India as the company —the second biggest carmaker in the country — signed a ‘term sheet’ for acquisition of General Motors’ idle and union-hit Talegaon plant in Maharashtra, stepping in after Chinese Great Wall Motors (GWM) failed in its bid due to regulatory hurdles following India-China border troubles.
Hyundai hopes that GM will be able to settle labour union troubles at the Talegaon plant which has been shut since 2020 and has seen workers filing legal cases against the American company over issues of compensation and job continuity. Hyundaiis waiting for regulatory, legal, and labour approvals for the deal to go ahead. “The Term Sheet covers the proposed acquisition of (i) Land & Buildings and (ii) Certain machinery and equipment for manufacturing… The proposed acquisition is subject to the signing of the ‘Definitive Asset Purchase Agreement’ and fulfilment of conditions precedent and receipt of regulatory approvals from relevant government authorities and all thestakeholders related to the acquisition,” Hyundai said in a statement.
Aspokesperson for GM said, “GM ceased manufacturing at the site in 2020. The transaction is subject to government and regulatory approvals. ”
Hyundai has been looking to grow its production capacity as it looks to expand in electrics.
Hyundai hopes that GM will be able to settle labour union troubles at the Talegaon plant which has been shut since 2020 and has seen workers filing legal cases against the American company over issues of compensation and job continuity. Hyundaiis waiting for regulatory, legal, and labour approvals for the deal to go ahead. “The Term Sheet covers the proposed acquisition of (i) Land & Buildings and (ii) Certain machinery and equipment for manufacturing… The proposed acquisition is subject to the signing of the ‘Definitive Asset Purchase Agreement’ and fulfilment of conditions precedent and receipt of regulatory approvals from relevant government authorities and all thestakeholders related to the acquisition,” Hyundai said in a statement.
Aspokesperson for GM said, “GM ceased manufacturing at the site in 2020. The transaction is subject to government and regulatory approvals. ”
Hyundai has been looking to grow its production capacity as it looks to expand in electrics.
