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GM To Build New Plant In India

General Motors India President, Rajeev Chaba signed an agreement with the Maharashtra Secretary V.K. Jairath to build a 300-acre facility in the western state.

The $300 million facility, located in the city of Talegaon, will have an annual production capacity of 140,000 vehicles per year according to a company statement. With an employee count of more than 1000 this facility with double GM's annual manufacturing capacity in India bringing the total to 220,000 vehicles.

"We chose Maharashtra as the site of our new manufacturing facility largely because of its outstanding logistics and the proactive approach taken by the state government. Maharashtra also offers advantages in terms of its employment base, costs, infrastructure and geographic location," Chaba said.

Production of a mini-car slated for the domestic market is expected to begin third quarter of 2008.

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