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A friend of mine told me this today...I guess its true.
Economic Times article 10 Oct
"Honda threatens to take 2-wheeler plant out of India
In what could be a setback to foreign investor confidence in India?
Japanese auto major Honda has threatened to shut operations at its wholly-owned two-wheeler plant in Haryana due to recurring labour problems.
The company, Honda Motorcycle and Scooter India (HMSI), is the market leader in the scooter segment and has invested around Rs 1,000 crore at its factory in Manesar on the outskirts of Delhi. But recent labour unrest, that has aggravated as the company negotiates a new wage settlement with workers, has crippled the company's production pipeline, forcing it to stop accepting orders at dealerships.
The Economic Times said production at the plant is down by more than 50% and the labour trouble has meant that a new line for vehicles, the third one since production began, has failed to take off. While no concrete figures are available, it is estimated that the company has suffered a loss of around Rs 250 crore due to a dip in productivity as workers have gone slow and the new line has not started.
This is not the first time the company finds itself facing labour trouble. In 2005, an agitation at the Honda plant hit national headlines when workers were brutally beaten up in a lathicharge by the local police".
Honda dealer at malad mentioned sadly that....its time
Unicorns and Activa's will be sold in clearence sale...I am praying this to be just a rumor.
Economic Times article 10 Oct
"Honda threatens to take 2-wheeler plant out of India
In what could be a setback to foreign investor confidence in India?
Japanese auto major Honda has threatened to shut operations at its wholly-owned two-wheeler plant in Haryana due to recurring labour problems.
The company, Honda Motorcycle and Scooter India (HMSI), is the market leader in the scooter segment and has invested around Rs 1,000 crore at its factory in Manesar on the outskirts of Delhi. But recent labour unrest, that has aggravated as the company negotiates a new wage settlement with workers, has crippled the company's production pipeline, forcing it to stop accepting orders at dealerships.
The Economic Times said production at the plant is down by more than 50% and the labour trouble has meant that a new line for vehicles, the third one since production began, has failed to take off. While no concrete figures are available, it is estimated that the company has suffered a loss of around Rs 250 crore due to a dip in productivity as workers have gone slow and the new line has not started.
This is not the first time the company finds itself facing labour trouble. In 2005, an agitation at the Honda plant hit national headlines when workers were brutally beaten up in a lathicharge by the local police".
Honda dealer at malad mentioned sadly that....its time
Unicorns and Activa's will be sold in clearence sale...I am praying this to be just a rumor.
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