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Suzuki Says Manesar Factory Output to Recover to 800 Units a Day

Suzuki Motor Corp. President Osamu Suzuki
Suzuki Motor Corp. President Osamu Suzuki. Photographer: Haruyoshi Yamaguchi/Bloomberg

Sept. 6 (Bloomberg) -- Suzuki Motor Corp. said it expects production at the Manesar, India, factory run by its local unit to recover to 800 cars a day this month after riots over a labor dispute in July caused its closure for a month.

The factory built about 1,700 cars daily before the disturbances that left one manager dead and is currently operating under police surveillance, President Osamu Suzuki told reporters today in Tokyo. The factory currently makes about 670 vehicles a day.

Suzuki is increasing output after Indian unit Maruti Suzuki India Ltd. resumed partial production at its Manesar plant Aug. 21. Sales at Maruti Suzuki, India’s largest automaker by volume, plunged 41 percent in August, after a general manager was killed and dozens of executives hurt in a disturbance at the plant about 50 kilometers (31 miles) southwest of New Delhi.

“Without question, we hope that legal action will be taken,” over the riot, Suzuki said. “It is still unclear what caused the riot.”

The carmaker rose 0.8 percent to 1,374 yen as of 2:29 p.m. in Tokyo trading. Maruti advanced 1 percent to 1,185.20 rupees as of 11 a.m. in Mumbai.

The automaker said on Aug. 2 it will revise its profit forecast if necessary, depending on the situation at Manesar. Closure of the factory meant a loss of about 680 million rupees ($12.2 million) per day, according to estimates from Maruti.

Net income will probably jump 30 percent from the previous year to 70 billion yen ($892 million) in the 12 months ending March 31, Suzuki forecasts. Sales may advance 3.5 percent to 2.6 trillion yen, the company projects.

To contact the reporters on this story: Anna Mukai in Tokyo at amukai1@bloomberg.net; Yuki Hagiwara in Tokyo at yhagiwara1@bloomberg.net

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net

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