Economic slowdown: Auto companies in India cut more jobs, halt production

Agencies
August 23, 2019

New Delhi, Aug 23: With India’s auto sales declining for the ninth straight month in July, more automotive manufacturers are laying off workers and temporarily halting production to keep costs in check, according to sources and documents seen by Reuters.

Japanese carmaker Toyota Motor and South Korea’s Hyundai Motor are the latest in a string of companies to halt production at plants to combat slumping sales, according to company memos to employees, reviewed by Reuters.

Passenger vehicle sales in July fell at the fastest pace in nearly two decades. The sales declines have triggered major job cuts in India’s auto sector, with many companies forced to shut down factories for days and axe shifts.

Sources have told Reuters that even more companies have now begun to lay off temporary workers as the slowdown worsens.

Denso Corp’s India unit, which makes powertrain and air-conditioning systems for cars, has laid off about 350 temporary workers at its Manesar plant in north India, a source familiar with the matter told Reuters.

Bellsonica, which is part-owned by India’s biggest carmaker Maruti Suzuki and makes fuel tanks and brake pads, has also let more than 350 workers go in Manesar, two sources said.

Denso did not immediately respond to a request for comment. Bellsonica could not immediately be reached.

Reuters earlier this month reported automakers, component manufacturers and dealers had already cut 350,000 jobs.

In a meeting with India’s finance ministry on Aug. 7, industry executives asked for tax cuts, and easier access to finance for dealers and buyers, in an effort to revive sales.

Toyota, in a notice dated August 13, told its workers the company would halt production at its plants in Bengaluru in southern India on August 16 and 17 “due to low market demand of vehicles” and high stock of about 7,000 vehicles.

N Raja, deputy managing director, at Toyota’s India unit, told Reuters that while the company had a flexible production system it had to resort to five no-production days in August to prevent the build up of stock.

“The industry is deeply concerned with the reality of poor customer sentiment faced by the sector,” said Raja, adding he hoped the government would step in to support the industry.

Hyundai, in a memo on August 9, also said it would halt production for several days in August across various departments including the body shop and paint shop as well as its engine and transmission plants.

A Hyundai Motor India spokesman said the company expected sales to pick up in the festive season starting next month.

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coastaldigest.com news network
July 1,2020

Udupi, July 1: In a concerning development, another SSLC student in Udupi district has tested positive for covid-19.

With this the number of covid-19 patients among SSLC students in the coastal district rose to three. All of them are girls.

The fresh case has been reported from Byndoor. She has already written three papers.

She had reportedly developed some of the symptoms and hence her throat swabs were sent for testing on June 30. Today she received positive report, sources said.

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News Network
May 29,2020

Bengaluru, May 29: Seven out of ten (72 per cent) workers in Karnataka reported having lost their employment during the COVID-19-induced lockdown, according to findings of a survey by Azim Premji University, in collaboration with ten civil society organisations.

The university said in a statement it conducted "a detailed" phone survey of 5,000 workers across 12 states in the country, to gauge the impact of the COVID-19 lockdown on employment, livelihoods, and access to government relief schemes.

The survey covered self-employed, casual, and regular wage and salaried workers and it released the findings for Karnataka on Thursday.

Seventy-six per cent of urban workers and 66 per cent of rural workers lost their employment, the survey findings said.

For non-agricultural self-employed workers and wage workers, who were still employed, average weekly earnings fell by two-third.

More than four in ten salaried workers (44 per cent) saw either a reduction in their salary or received no salary during the lockdown.

Six out of ten households reported that they did not have enough money to buy even a weeks worth of essential items, according to the survey.

Eight out ten households reported a reduction in food intake, while less than three in ten vulnerable households (27 per cent) in urban Karnataka received any form of cash transfer from the government, it said.

In summary, the disruption in the Karnatakas economy and labour markets is enormous. Livelihoods have been devastated at unprecedented levels during the lockdown.

The recovery from this could be slow and very painful, the statement said.

As a response to the findings of this survey, the team which has conducted the survey suggested a universalisation of the PDS to expand its reach and implementation of expanded rations for at least the next six months.

It suggested cash transfers equal to at least Rs.7000 per month for two months, and proactive steps like expansion of MGNREGA, introduction of urban employment guarantee, and investment in universal basic services, among others.

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News Network
April 18,2020

Bengaluru, Apr 18: Virtually defending the Gowda family for conducting a marriage reportedly defying lockdown restrictions, Chief Minister B S Yediyurappa on Tuesday said it was performed in a simple manner and well within their limits, "for which they are to be congratulated."

"All the necessary permissions were given and the marriage was performed in a simple manner. There is no need to discuss about it. They had done it well within their limits for which I congratulate them," Yediyurappa said to a query from reporters during the post-COVID-19 briefing.

Scores of people had thronged a farmhouse on Friday to get a glimpse of the wedding of former Prime Minister and JD (S) supremo, H D Deve Gowda's grandson Nikhil Kumaraswamy, ignoring appeals not to visit the venue in view of the ongoing lockdown to check the COVID-19 outbreak. Nikhil, son of former Chief Minister H D Kumaraswamy, tied the nuptial knot with Revathi, the grand-niece of former Karnataka housing minister M Krishnappa.

The marriage was solemnised at Kumaraswamy's Kethaganahalli farmhouse at Bidadi in the neighbouring Ramanagara district, a JD(S) stronghold. Kumaraswamy had taken to Twitter after the marriage, thanking his party MLAs, leaders and workers for staying away from the event and blessing his son from their houses. In a series of tweets, he had said social distancing was maintained and all precautionary measures were taken throughout the event.

BJP had hit out at the JD(S) first family for flouting the norms, alleging that at least 150 to 200 vehicles were given permission to attend the event, that too at at time when social workers wanting to serve the badly affected poor people were not being allowed to ply any form of transport JD(S) leader N H Konareddi and MLC T A Sharavanna had denied the charges, saying the union government guidelines had been followed and that social distancing was maintained.

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