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Tuesday, October 11, 2011

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Maruti vendors fear losses due to production cuts

  • Tuesday, October 11, 2011
  • Krishna Mohan Roy
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  • In this file photo, cars are being rolled out of the Maurti Suzuki plant at Manesar.
    With labour unrest taking toll on production at Maruti Suzuki plants, exclusive suppliers of auto components to the country’s largest carmaker fear heavy losses this festival season and have sought government intervention to help resolve the issues.
    Impacted by frequent incidents of labour woes at the company, industry representatives on Tuesday sought the intervention of Haryana Chief Minister Bhupinder Singh Hooda to resolve the impasse and protect the investor friendly image of the state.
    Industry representatives said that over 200 units supply components to Maruti’s Manesar plant alone.
    “The labour problem at Maruti’s plant has severely impacted ancillary units and vendors which are supplying auto parts to the company,” Gurgaon Udyog Association, president, Parveen Yadav said.
    Terming labour woes at Maruti as “unfortunate” for the state, vendors said that they have failed to understand the reason behind frequent strikes at the company.
    “It is only during the festival season that we expect good amount of business, as car sales surge in this period, but now because of hampering of production (at Maruti), we are going to suffer heavily,” Mr. Yadav said.
    A Gurgaon based vendor pointed out that he was suffering daily loss of Rs 30 lakh due to the labour trouble.
    “I am unable to supply material to Maruti because of labour problem at Maruti Suzuki...my daily loss has reached Rs 30 lakh,” said Ishwar Singh, who supplies plastic, sheet metal parts to Maruti’s Manesar and Gurgaon plants.
    Mr. Yadav said, “Maruti Suzuki is not a small company...it is a well known brand around the globe for car production. We demand from Haryana Chief Minister to intervene into this matter and put an end to labour problem at Maruti plant.”
    Meanwhile, Mr. Hooda, along with his ministerial colleagues, is busy in Hisar by-election on October 13.
    Society of Indian Automobile Manufacturers said on Monday that it was hoping the Haryana Government to intervene immediately to bring situation under control.
    Maruti Suzuki on Monday said the production at its plant in Gurgaon has been affected due to strike at Suzuki Powertrain which supplies engine to Maruti Suzuki.
    @The Hindu

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