GM India responds to the wake up call.
Economic Times has reported that the tools and dyes of the Chevrolet Spin from General Motors' Bekasi plant in Indonesia, which the company announced this week would be closed down by the end of June, will be shipped to India, elucidating the quick rollout of the car.
The closure of the Bekasi plant, situated outside the Indonesian capital of Jakarta, will cut 500 jobs. The move is a part of the company's global restructuring operation.
Usually it takes a manufacturer 3 years to launch a localized car, and Indian GM officials last year said in media interviews that an all-new product was out of question before 2017.
In a surprise announcement on Feb 18, the company confirmed that it would launch the Trailblazer SUV in 2015, and the Spin MPV in 2016. The speeding up of launches is a desperate effort to revive falling sales and increase plant capacity utilisation which is currently around 30 percent.
The ET reports claims that the announcement by GM India to launch the new models had the vendor fraternity surprised as the development work was yet to begin.
"In a normal course, if GM were to develop the product from scratch, it would have taken over 24-36 months. But by securing tools and dyes from international base, GM would be able to launch the vehicle in a much quicker time in India. The company is expected to share the design of components to the vendors shortly," said a source to the newspaper.
The report adds that the timeline crunch can be managed as GM India has proven capabilities with body shell production, paint shop, engine manufacturing (1.3-litre diesel engine) and has global component suppliers in India. The report does not specify whether the Spin will be made in Gujarat (where test mules were spotted) or in Maharashtra.
Chevrolet Spin - Image Gallery
Chevrolet Spin Activ Indonesia spec - Image Gallery
[Source - Economic Times]