New Delhi: The South Korean carmaker Hyundai India finally moves to pump in fresh investments, as the company – the country’s second largest carmaker – signs a ‘term sheet’ to acquire General Motors’ defunct and union-hit Talegaon plant in Maharashtra , Stepped after the Great Wall of China. Motors (GWM) failed in its bid due to regulatory hurdles following India-China border troubles.
Hyundai hopes GM will be able to address labor union troubles at the Talegaon plant which has been shut since 2020 and has seen workers file legal Cases against US company on compensation and job continuity issues. Hyundai is awaiting regulatory, legal and labor approvals for the deal to proceed. “The term sheet covers the proposed acquisition of (i) land and building and (ii) certain machinery and equipment for the construction of … the proposed acquisition subject to the signing of a ‘fixed asset purchase agreement’ and the fulfillment and receipt of conditions precedent Subject to regulatory approvals from the relevant government authorities and all stakeholders related to the acquisition,” Hyundai said in a statement.
Spokesman For GM said, “GM will cease construction at the site in 2020. The transaction is subject to government and regulatory approval.”
Hyundai is looking to increase its production capacity as it looks to expand into electrics.
Hyundai hopes GM will be able to address labor union troubles at the Talegaon plant which has been shut since 2020 and has seen workers file legal Cases against US company on compensation and job continuity issues. Hyundai is awaiting regulatory, legal and labor approvals for the deal to proceed. “The term sheet covers the proposed acquisition of (i) land and building and (ii) certain machinery and equipment for the construction of … the proposed acquisition subject to the signing of a ‘fixed asset purchase agreement’ and the fulfillment and receipt of conditions precedent Subject to regulatory approvals from the relevant government authorities and all stakeholders related to the acquisition,” Hyundai said in a statement.
Spokesman For GM said, “GM will cease construction at the site in 2020. The transaction is subject to government and regulatory approval.”
Hyundai is looking to increase its production capacity as it looks to expand into electrics.
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