Hebei, China-based Great Wall Motor Company Ltd. has agreed to acquire General Motors Co.'s manufacturing plant in Talegaon, India, according to a Jan. 17 release.
Financial terms of the transaction were not disclosed, but Reuters, citing sources, reported that Great Wall will likely pay about $250 million to $300 million for the factory.
Great Wall Motor said the deal is a key part of its plan to enter and invest in India to strengthen its overall global strategy.
The move is expected to create jobs, promote the development of the local supply chain, research and development and related industries, the Chinese automaker said.
Great Wall Motors said it plans to unveil its Haval brand and GWM electric vehicle at the Delhi International Auto Show.
General Motors India will provide a separation package and transition support for affected employees, as well as an orderly transition for partners. Its Chevrolet brand will also continue to honor all warranties and provide aftersales support for existing customers in India.
The acquisition is expected to close in the second half, subject to requisite government and regulatory approvals.