GM India announced its exit on 18th May; will continue production at Talegaon plant for overseas markets
General Motors has given its India employees less than a month to opt for voluntary retirement after the American automaker announced its exit from the domestic market on 18th May. As the company is closing its business here, it sent a mail to all of its employees on 19th May giving them the chance to opt for VSS (Voluntary Separation Scheme) by 15th June, 2017.
With General Motors’ decision around 400 employees working in domestic sales and after sales services are expected to be impacted. The company offered them the compensation in form of 45 days salary for every year of completed year of service or part thereof in excess of six months.
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For the employees nearing retirement, General Motors devised the compensation plan of monthly salary multiplied by the remaining months of service till the normal age of retirement. The official communication by GM also stated that minimum compensation shall be three months salary. By September this year, around 250 people in marketing, sales, finance and administration would be given golden handshake.
While the American auto major has sent mails to the employees about the VSS, it also told the after sales department to continue the service till further notice. The company is currently in talks with Mahindra & Mahindra for an after sales servicing partnership with the homegrown automaker.
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GM opted out from Indian market as it has been facing massive loss here. In April this year, it stopped production at its Halol plant and signed MoU with its Chinese partner SAIC to sell the plant to the latter. For the Halol plant workers GM offered a compensation plan of 40 days of salary per year of completed service, but later that was increased to 100 days of salary per year. However, despite leaving the domestic market, General Motors will continue production at its Talegaon plant for the export markets.
Source: ET