Toyota India Production Suspended Amid Labour Unrest

By Ganesh

Updated: Monday, March 17, 2014, 10:38 [IST]

Toyota Kirloskar Motor, the Indian unit of Toyota Motor Corp, has temporarily stopped production of automobiles at its manufacturing facilities.

The two manufacturing facilities located on the outskirts of Bangalore have been locked out since Sunday amid labour unrest following failed salary negotiations between management, labour union and the local government authorities.

Also Read: 2014 Toyota Corolla Altis To Be Launched In May

Workers have been locked out from both the manufacturing plants due to concerns about safety of the management, workers and business. Until now Toyota has not stated for how long the lockout would continue.

The Japanese company, which is India's fourth largest automaker behind Maruti Suzuki, Hyundai and Mahindra, has stated that for the past 25 days a few workers have been disrupting production and have refused to work over salary issues.

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Each day of suspension of production results in a backlog of 700 vehicles and the management and labour union will continue holding talks to resolve the situation, thought no one knows how long it might take.

The two manufacturing facilities of Toyota Kirloskar Motor are located outside Bangalore, one in the small town of Bidadi. The automaker manufacturers/assembles a range of vehicles here including the popular Innova MPV, Etios sedan and Corolla Altis saloon.

The ongoing problems are likely to delay upcoming launches such as that of the 2014 Corolla Altis and the Etios Cross.