Maruti has no plans to shift its base from Haryana: assures chairman RC Bhargava to CM.

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maruti-violence-manesarJuly 24, Manesar: The Haryana state government has set up a special investigative team (SIT) to look into the violence at Maruti’s Manesar plant and has appointed leading Supreme Court lawyer K.T.S. Tulsi as a special prosecutor for the case. This was the first formal interaction between the government and the company after the violence forced Maruti to shut down the plant.

Haryana Chief Minister Bhupinder Singh Hooda and Industries Minister Randeep Surjewala met Maruti Suzuki Chairman R C Bhargava, along with Managing Director & CEO Shinzo Nakanishi in the capital last evening.

MR. Bhargava, assured Chief Minister that Maruti has no plans to shift its base from Haryana.

Talking to media after meeting Hooda, Bhargava said: “How many times I have to tell that the question (of Maruti shifting to Gujarat) is 100 percent fiction. The state government is with us and we are one.”

He said that Hooda is determined to identify the culprits and has assured speedy trial for the Manesar incident. He said that they both shared same concern and wanted to know who was behind the incident. Hooda assured all help and cooperation from the Haryana government to sort out the problems being faced by Maruti-Suzuki.

Meanwhile, Maruti’s production and commitment to customers shattered due to the incident. Swift, one of India’s largest selling cars, will soon run out of stock as the company is not expected to revive production at the violence-hit Manesar plant, its sole manufacturing facility, any time soon.

“We will not be able to make Swift this time as the Manesar plant is totally shut, unlike last year when we were making the car frame and shifting it to Gurgaon for final assembly. This time, we have no certainty on the production schedule of these high-selling cars as the situation is much more grave,” said Maruti Managing Director S Nakanishi.

Maruti Suzuki’s latest industrial problem has badly affected dealers and the management who have been banking on the success of the two models to drive sales and regain market share lost due to last year’s strikes.

The car has a waiting period of over 2-3 months across different market and also offers highest margins across all Maruti products, but given the uncertainty, dealers have informed customers about the longer period for delivery.

“We are already informing customers to experience much longer waiting duration for Swift and DZire.,” said a Delhi-based Maruti dealer.

Last Wednesday’s mishap, however, comes when the industry is also sitting on an inventory of over 2,50,000 to 3,00,000 units. Suppliers dealing with Maruti Suzuki’s rivals say it may help ease inventory but production schedules are unlikely to be affected much.

Maruti-Suzuki car plant was established in Gurgaon in the early 1980s and went on to become the single largest car manufacturer in the country.

The company’s human resources general manager Avnish Dev was killed and nearly 100 people were injured, including managers of the plant, as workers went on a rampage last week. The car manufacturing plant has shut down operations after the incident.

News Gathered by India News

Posted by on Tuesday, July 24th, 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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