Wednesday, 5 October 2011

Maruti Suzuki Starts Output at Third Factory

Maruti Suzuki India Ltd. Tuesday started production at its third factory in northern India's Haryana state, which should help the auto maker cut the waiting time for its Swift hatchback, a company spokesman said.
The Swift hatchback is the only car the Suzuki Motor Corp. unit makes at the new factory in Manesar, on which it has spent 17 billion rupees ($346 million), the spokesman said.
It is Maruti's second factory in Manesar and will ramp up overall vehicle production at India's largest car maker by sales to 1.65 million units a year when fully operational. Maruti is also building another factory in Manesar with a capacity of 250,000 vehicles a year that is expected to be operational by September 2012.
Maruti's other factory is located in Gurgaon, also in Haryana state.
"We have started vehicle assembly at the new plant and as of now we are concentrating only on the Swift," the spokesman said, without specifying the number of vehicles produced Tuesday.
The Swift is one of Maruti's bestselling models. It has received 108,000 bookings since an upgraded variant was launched in August.
Output of the Swift was impacted recently due to labor issues at the Manesar factory, where it also makes the A-star small car and SX4 sedan. Maruti halted operations on Aug. 29 after it asked 950 workers to sign a "good conduct bond" before they could enter the factory. The move came after the company said it discovered "serious and deliberate" quality problems in cars made at the plant.
The company lost production of 20,000 cars, or 6 billion rupees, in the past month due to the labor issue, which was resolved Saturday after the workers agreed to sign the bond.


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