Renault Nissan JV in India lays off 800, shuts down production

Renault Nissan JV in India lays off 800, shuts down production of 1 shift

0

A new report reveals that Renault Nissan Automotive India Pvt. Ltd, a Franco-Japanese auto alliance, has laid off 800 people. In addition to that, suspension of third shift production has also been reported.

People in the knowhow reveal that the decision was taken in view of the piling stocks at company dealerships which amount to over 20,000 units as on date. The report also adds that in the last one week, sales of Nissan India have come down to just 50 units across the country.

Further, the report states that, there is also potential loss of 1,980 jobs which the company will be undertaking in a phased manner with initially 800 temporary workers being sent home. Colin MacDonald, Managing Director of Renault-Nissan has stated that the company plans to protect the jobs of permanent and on-roll employees with them being reassigned to other duties within the plant.

As on date, piling inventories include 3,450 Datsun Redi-GO and 5,260 Renault Kwid models. Customer footfalls at company showrooms have dipped drastically during the year end when sales usually escalate following recent demonetization of high value notes being announced by the Government which has adversely dampened buyer enthusiasm.

Renault-Nissan is not the only one who is suffering. The situation is more or less same across the auto industry. In order to fight the temporary problem, car brands have announced innovative offers to tackle low sales and bring the customer back into the showroom.

For eg, Mahindra has announced discounts and benefits amounting up to INR 2.7 lakh, Toyota is offering 100% on-road financing, VW India has announced a scheme in which you can start paying EMIs in 2018, while Audi India has announced a 6 month EMI holoday scheme.

via Times of India