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On one side, there is a commitment (to invest) of $1 billion, and on the other, you are shutting a plant. Why is this so?
It is important that we drive efficiency. We will now have the efficiency at a plant where we can achieve long-term sustainable profitability, with focus on our investment. We have to invest in this new vehicle family and the ability to bring 10 new products to the market. When you look at the Talegaon (near Pune) plant, it is very flexible and expandable. Installation there is much more compatible with the direction we are going. We had to make some changes and concentrate those investments such that it is successful in the long term.
Will you sell the Gujarat plant?
We have said we are ceasing production and we were very responsible in getting that message out in a timely fashion, to allow individuals to plan. We have also committed to make sure the right things happen (with the employees).
Workers at the Halol unit might consider legal action.
We are not aware.
GM has had a very restricted growth in India, compared to your peers. Why?
What we have done is to put a comprehensive plan together that looks at all the aspects. In the past, we had products (but) we did not have the consistency of rolling out new products focused on the customer. We did not have consistency with regard to quality, which then caused inconsistencies with the supply base and challenges for the dealerships. So, we have looked at it on how to ensure when we come, we do so with a full portfolio of vehicles, to truly bring what the Chevrolet brand means, with its true DNA. In the past, it was (in) bits and pieces; now it’s linked together and we have the full commitment of the region and the whole cooperation to execute the plan flawlessly.
What is India’s importance in GM’s global plan?
India is an incredibly important market. By 2025, it is expected to be around an eight-million one. We also see a lot of change that Prime Minister (Narendra) Modi is driving. We believe in ‘Make in India’ and that’s why in addition to serving the Indian customer, we are making a facility here (Maharashtra) capable from an export point of view. We are already exporting and plan to grow that.
What is your plan of locally developing products?
Stefan Jacoby, president, GM International: We have an engineering centre in Bengaluru which has about 2,000 engineers. Part of these are integrated into the global engineering work, working on global programmes. Part of that team is involved in localisation of global products for the Indian markets. We are utilising our global scale and we are not having a specific vehicle only for the Indian market. We are looking to develop a global family of products for emerging markets.
How much can India contribute to GM's global sales?
We've said we'd like 30 per cent of our production to go for export. That will rely on how we do our products and we are totally committed in achieving that. We have developed strong manufacturing capability in India to make products for the globe and we are going to build on it.
GM started with the Opel brand, eventually moving to Chevrolet. Does it need the assistance of other brands in India?
Chevrolet is our largest and significant brand. It does extremely well in South America, is growing very quickly in China and has a very strong base in North America. We think it is the perfect brand for India, as it offers technology, safety, values. It's a brand creating relationships with the employee. As we go forward, if we would supplement the brand, (only) time will tell.
GM will launch 10 new products in five years. What will happen to the existing ones?
We will bring new products, refreshed products, and will look for combinations. By 2020, we will have no product in our showroom older than three years. That means we will exit (from) some of our existing vehicles, which happens in every market.
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