Maruti Suzuki closes Indian plant after violence erupts

Published:  24 Jul at 9 AM

Indian-based car manufacturer Maruti Suzuki has closed its plant in Manesar after clashes last week left 85 people injured and one official dead. The violence and subsequent closure has seen shares in the joint operation between Suzuki Motor Corporation and Maruti tumble by five per cent.

The firm’s chairman, RC Bhargava, said at the weekend that it was currently too dangerous to restart production and that the plant would remain closed until an investigation into the violence had been undertaken. He was unable to say how many days this will take.

The clashes followed months of tension between plant bosses and workers. The factory in Manesar is responsible for around a third of the company’s output. Many are concerned that the closure of the unit will hurt the carmaker’s profits.

It has been estimated that the shut down is costing between 700 million and 800 million rupees everyday. According to the firm it has started to move finished vehicles out of Manesar and to dealers around India.

A number of arrests over the weekend mean that nearly 100 people are being held by the authorities in connection to the violence, including a senior trade union member.