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Maruti Suzuki Considering Total Plant Shutdown
A Maruti Suzuki spokesperson has confirmed the company was planning to shut down its operations at both Manesar and Gurgaon until the situation improves. If this really happens then people who have booked the carmaker's cars can say goodbye to their cars.
The strike at Manesar has also turned violent again with reports of workers clashing with security personnel and policemen. Maruti Suzuki had yesterday said it had rescued more than 450 workers from the Manesar plant who were being held forcefully by striking workers. The workers have virtually taken over the plant have not allowed any work to progress.
Maruti Suzuki has said it was highly disappointed by the occurring incidents. It has said the workers had breached a contract signed by them on October 1st. The Haryana government which had mediated talks between the management and workers has also criticized the workers for going on a strike within a week of signing an agreement.
Maruti Suzuki's sales have also not been up to the mark and September sales plunged 20 per cent. The Manesar plant produces the carmaker's most profitable car, the Swift and the strike has drastically reduced bookings. Bookings have already crossed more than one lakh units and the company is no position to deliver them within the stipulated waiting period. Dealers have already stopped taking bookings of the Swift.
The strike at Suzuki Powertrains has meant production of Maruti's other models will also be severely affected. The only models not to be affected by the ongoing strike are the Maruti 800, Maruti Omni minivan and the EECO. All the three cars do not have high volume sales and will not help Maruti improve its position.
At such a situation, one can easily say Maruti Suzuki is in deep trouble and will need to take drastic action to rectify it. Some say the statement announcing plant closure is a mild threat to the striking workers. If it is otherwise, then Maruti Suzuki will be sunk by its own workers which made it India's number one carmaker. The situation reminds us about the Bombay Mills crisis when the unreasonable demands of workers lead to the closure of the entire cotton mill industry in Mumbai in the 1980s.
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