Maruti’s losses mount as Manesar strike enters Day 6

09 Jun 2011

1

The workers' strike at the Manesar plant of Maruti Suzuki India, the country's largest carmaker, entered the sixth day today, with production be completely halted and no solution in sight.

Around 2,000 workers at the plant have been on strike since Saturday. The company had estimated the production loss up to this morning at 4,500 units, resulting in a loss of Rs250 crore.

The striking workers are demanding the recognition of a new union – the Maruti Suzuki Employees Union - formed by those working at the Manesar plant, among other things.

The Manesar plant produces the hatchbacks Swift and A-Star and sedans DZiRE and SX4. It rolls out about 1,200 units every day in two shifts.

The production hit is also affecting Maruti's future model rollouts including those of the popular Swift, which already has huge waiting periods. The new Swift, slated for a mid-year launch, is likely to get delayed till the festive season.

The waiting period of other models like Swift Dzire and SX4 diesel is also likely to go up by a few months. The inventory of models produced in Manesar is likely to dry up by the end of the month.

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