GM Inaugurates Flexi-Engine Plant in Talegaon, India

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

The state-of-the-art facility represents investment of $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 passenger cars manufactured by GM in India.

“This marks the beginning of GM’s next chapter in India.” GM India President and Managing Director Karl Slym said. ”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 less than two years.”

On Aug. 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 Spark and Beat, GM India also produces the Captiva, Optra, Cruze, Aveo, Aveo U-VA, and Tavera for sale nationwide.

GM is the fifth-largest automobile manufacturer in India. In the first 10 months of 2010, GM India sold a record 93,960 vehicles, which represents a 73 percent increase over 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 General Motors – General Motors, one of the world’s largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling. GM’s largest national market is China, followed by the United States, Brazil, the United Kingdom, Germany, Canada, and Russia. GM’s OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors acquired operations from General Motors Corporation on July 10, 2009, and references to prior periods in this and other press materials refer to operations of the old General Motors Corporation. More information on the new General Motors can be found at www.gm.com.