Latest Car News in India

Monday, September 19, 2011

By Pranjal Gera

Problems at Manesar plant continue to persist for Maruti Suzuki

Maruti Suzuki, India's largest carmaker, has been struggling to continue the production of its cars at its Manesar plant. It's been three weeks since the workers' went on strike. The workers refused to sign the good conduct bond given to them by the management of the company, and thus went on strike. The company accused the workers of intentionally damaging cars while on assembly line.

Maruti Suzuki's top officials have said that they are determined and won't compromise on any condition. The situation has worsened over the period and now it has become a major issue for the Indian automobile market. Foreign investors are watching over the situation closely.

Maruti Suzuki has fired 21 workers till now and has prohibited the rest of the workers from entering the plant premises. However, 100 of its 950 permanent workers have already signed the good conduct bond and have returned to work.

The company officials have said that the company is ready to bear losses rather than compromising with the workers. During the period of past four years, the share of Maruti Suzuki in the market has come down from 55 percent to 45 percent. More and more foreign companies are entering the Indian market, which is being considered as Asia's third largest automobile market. Maruti's shares have hit 12 month low and there has been a significant fall in the sales of its cars.

Suzuki's Chairman Osamu Suzuki said that the company won't take back its demands of workers signing the good conduct bond before resuming production. This can badly affect the expanding Indian economy, as the country labour force is considered its main power and investing factor for foreign companies. The strike has affected production of its highest selling car Maruti Swift, Swift Dzire and sedan Maruti SX4.

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