General Motors India to continue with cut-down in production till Q4 2012

Saturday 30 June 2012, 12:13 PM by

General Motors India, a unit of the US based largest vehicle maker, has said that they will continue to cut – down the production till the upcoming festive season. The company will be continuing with taking a day off per week till the period of October – November.

The decision has been taken to avoid an inventory build-up due to decreasing demand. The company has been aligning the production at both of their manufacturing facilities in India (at Halol and Talegaon) on daily basis as per the variation in Demand.

Speaking to the reporters in Mumbai, Mr. Lowell Paddock, General Motors India managing director, said, "It (the one-day production halt every week) is likely to continue until the festival season (around October)."

According to Mr. R Balendran, Vice President for corporate strategy, "Unlike other carmakers, we don't shut down the plant and instead a no-production day. This will help us avoid an inventory build-up." He added, "We don't expect the market to improve before the festival season and even during that period, there is not going to be a very significant improvement as such."

While the Halol facility of the company produces 85,000 unitsper year, the Talegaon facility manufactures 1.4 lakh units per annum.