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Toyota suspends Indian auto production on wage impasse

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Published : 2014-03-17 20:28
Updated : 2014-03-17 20:28

Toyota Motor Corp., the world’s largest automaker, said it’s suspending production in India after an impasse with union workers over wages led to output disruptions and threats to plant managers.

Toyota has called a lockout at its facilities near Bengaluru, formerly known as Bangalore, after a breakdown in negotiations that began last year, the Toyota City, Japan-based carmaker said in an emailed statement.

“The company is left with no other option but to declare a lockout to ensure the safety of its workers and management personnel,” yota said in the statement. The automaker said it will continue talks with its union and expects daily production to be cut by about 700 vehicles during the suspension.

The lockout in India plants adds to unrest in emerging markets that president Akio Toyoda has called “unpredictable.” The head of the carmaker’s operations in Thailand, its second-biggest production base in Asia after Japan, said in January that protests against Prime Minister Yingluck Shinawatra may affect future investment plans. (Bloomberg)

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