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New flexi-engine plant to fuel Chevrolet growth in India

2010-11-12

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Talegaon, India - General Motors today inaugurated its new flexi-engine facility in Talegaon, India. This is GM's first powertrain plant in the world that enables both petroleum and diesel engines to be manufactured simultaneously.

The state-of-the-art facility represents investment of US$230 million. It has an initial annual production capacity of 160,000 engines and is designed to accommodate future expansion. The new engine plant will begin by producing engines for small Chevrolet passenger cars manufactured by GM in India.

Speaking at today's event, GM India President and Managing Director Karl Slym said: "This marks the beginning of GM's next chapter in India. The opening of our new facility will enable our company to become more competitive and keep up with the growing demand for our vehicles. GM India's sales have grown significantly since we began rolling out our mini-cars, the Chevrolet Spark and Beat, at our Talegaon plant about two years back."

Slym added, "We appreciate the support of the Maharashtra government and our employees across the country. Their backing has enabled us to build a world-class engine facility in record time of under two years."

On August 28, 2008, GM signed an agreement with the Government of Maharashtra for the construction of a new engine plant adjacent to its vehicle manufacturing facility. Construction started in December 2008, with pilot production commencing in March 2010. The engine plant complements GM's modern vehicle manufacturing facilities in Talegaon and Halol, Gujarat, as well as the GM Technical Centre – India in Bangalore, which is carrying out a range of engineering, design and R&D activities.

General Motors India has completed 14 years of operation. It offers a growing range of products under the Chevrolet brand, which was introduced in India in 2003 and has become one of the fastest-growing automotive nameplates in the country. In addition to the Chevrolet Spark and Chevrolet Beat, GM India also currently produces the Chevrolet Captiva, Chevrolet Optra, Chevrolet Cruze, Chevrolet Aveo, Chevrolet Aveo U-VA, and Chevrolet Tavera for sale nationwide.

GM is now the fifth-largest automobile manufacturer in India. In the first 10 months of 2010, GM India sold a record 93,960 vehicles, which represents growth of 73 percent from the same period last year. It has 209 sales points and 205 service outlets in 178 cities across India, and has embarked upon an ambitious rural marketing initiative to further boost sales. In February 2010, GM and its Chinese partner SAIC opened a joint venture in India for cooperation in vehicle manufacturing and sales.

About Chevrolet

Chevrolet is General Motors' largest global brand with annual sales of about 3.5 million vehicles in more than 130 countries. It is the fourth biggest global car brand in terms of sales and also one of the fastest growing brands in the world. Chevrolet Europe delivers attractive, distinctive design, practical, economical cars and outstanding value for money. After re-launching the brand in Europe in 2005, Chevrolet more than doubled its sales to over 500,000 in 2008. In 2009, Chevrolet held its market share in Europe at 2.3 percent, selling 426,000 cars. Chevrolet has a network of 2,900 dealers and service points in Europe. The Chevrolet line-up includes the all-new Spark city car, the small Aveo, compact Cruze sedan, Captiva SUV, mid-size Epica and the legendary Corvette sports car. In 2011, Chevrolet will launch the Orlando, an all-new family van, the Camaro coupe and convertible, the new Aveo and the Cruze hatchback as well as re-launching the Captiva SUV with four new engines. Chevrolet's biggest markets in Europe are Russia, Italy, Germany, France, Spain and the U.K. Established in the U.S. by Swiss émigré Louis Chevrolet in 1911, the brand is preparing to celebrate its centenary with the launch of the ground-breaking Chevrolet Volt extended-range electric vehicle. More information on Chevrolet can be found at http://www.chevroleteurope.com or http://media.chevroleteurope.com.