Toyota shutdown creates international buzz
By agencies   |   Tuesday, 10 January 2006, 20:30 IST
Printer Print Email Email
BANGALORE: At a time when the Indian economy is growing and MNC are entering India, the news of Toyota shutting down its car plant in India has created international buzz. Scores of international newspapers and TV news channels have reported the news about the world’s second largest carmaker shutting down its car plant in Bangalore after workers went on strike last week to protest the dismissal of three employees. Workers began the strike Friday, demanding the three-fired employees of the factory be rehired. The factory, which is 89 percent owned by the Toyota, rolls out about 70 cars a day, including Toyota's Innova and its international best seller Corolla models. Another Japanese giant Honda had to shut down its two-wheeler factory in Gurgaon near Delhi after labor unrest following dismissal of employees. The news was a major headline across the world after the police canned the striking employees in which scores of employees were injured. With annual sales of about 1 million, cars, India has emerged as one of the biggest markets for carmakers. Companies like Ford Motor Co., General Motors Corp. and South Korea's Hyundai Motor Co. are increasing production and launching new models to meet growing demand. Experts say the labor unrest could hamper investments in India. Japanese companies are also wary of investing further if the labor problems persist.

siliconindia