GM warns Indian state's move to block its exit could hit investment

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An Indian state's move to block General Motors (GM) from shutting a plant and exiting the country defies the state's business friendly image and ...

An Indian state's move to block General Motors from shutting a plant and exiting the country defies the state's business friendly image and sends a"concerning message" to potential future investors, the U.S. automaker said on Friday.

GM's comments came after authorities in Maharashtra earlier this week rejected the automaker's application to cease operations at its plant in the western Indian state amid protests by workers who demanded GM continue production or keep them on the payroll indefinitely, according to local media.The decision runs counter to Maharashtra's business-friendly reputation, a GM spokesman said in a statement.

In January 2020, it agreed to sell its second factory in the state's Talegaon district to Chinese automaker Great Wall Motor Co, but tensions between India and China have delayed completion of that deal.Advertisement

 

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