Tata Motors closes Jamshedpur plant

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TATA Motors
Jamshedpur, Nov 22: Amidst the ongoing financial slowdown and production slump, Tata Motors, the largest automobile manufacturer of the country, today announced to stop production in its Jamshedpur commercial vehicle plant for five days begining November 25.

This is the fourth such closure of the plant in almost a decade and second in just one month as it had closed the plant recently between November 5-9 with three days announced block closure, one adjusted leave and a general holiday. Tata Motors spokesperson Captain P J Singh, in a statement issued here, said the company's Commercial Vehicle Plant at Jamshedpur would take block closure from November 25-29.

''It had been seen in the month of October, 2008, that unavailability of finance across the industry, coupled with high interest rates, was forcing the customers to postpone purchases.

This would call for appropriate action from Tata Motors from time to time to match the production with demand and avoid unnecessary build up of inventories in the company or with the dealers. This block closure is in line with the objective, as was the earlier block closure from November 6-8,'' the statement said.

Meanwhile, the labour union sources of the company said the management had informed the union about block closure. The production has dropped from almost 500 units per day in March to around 150 recently.

The auto giant has already disengaged almost all of its around 3,000 non-permanent workers due to production slump. It gave no work notice to half of them on October 20, 23 and November 3. Half of such workers were ousted during the general monsoon slump and were not taken back.

Recently the plant had brought down the number of production shifts to one from normal days three. Due to the Tata Motors demand downturn hundres of ancillaries in neighbouring Adityapur Industrial area are also facing crisis with mote than fifty of them already shut.


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