Suzuki Motor’s Maruti plant in Manesar is costing JPY1bn (US$12.7m) in lost sales every day it is down and the automaker is uncertain when production will resume after operations were suspended following a violent revolt by workers last month, senior executives have said.
“There are employees that feared for their lives, so our first priority in the restart is to ensure the well being and safety of workers,” Suzuki executive vice president Toshihiro Suzuki told the Nikkei.
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Indian police have arrested 12 suspects and are investigating the events leading up to the unrest.
“There is an ongoing police investigation. We cannot comment at this time,” said Suzuki, referring to allegations that a leftist group may have fueled the riot.
Maruti sales grew 6.8% year on year to around 71,000 units in July. The Manesar plant produces 1,700 units a day on average, translating to a daily sales loss of JPY1bn for Suzuki during the suspension.
Production in July fell short of initial plans by around 15,000 units as a result of the unrest. But the plant is capable of restarting at any time, since the damage to the facility was negligible, the Nikkei said [rioters torched the administration building and security gate – ed].
Separately, Suzuki executive Toyokazu Sugimoto told the Nikkei that each vehicle the Manesar factory produces is priced at about JPY600,000 ($7,600).
The executive did not comment on how much of an impact the suspension will have on profits but he said the automaker still has inventory left and the effects will not emerge until later.
