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Rains hit production at GM's Gujarat plant

August 10, 2006 15:47 IST
Source:PTI

Production was halted at the Halol plant of General Motors in Gujarat because of heavy rains, a senior company official said on Thursday.

"Production has been affected since Monday and had to be halted on Wednesday due to the rains, though things are gradually limping back to normal," General Motors India Vice-President P Balendran told PTI in New Delhi.

Balendran said daily production at the plant was 172 vehicles and added that sales and movement of finished products was severely hit due to the rains.

"We could manage just one shift of production on Monday and Tuesday and it had to be fully suspended on Wednesday.

"Even on Thursday, the first shift was hit," he said.

Sales of the company would be affected in August as Gujarat, Maharashtra, two of the big markets, were hit hard by the heavy rains, Balendran said. "Even Andhra Pradesh is reeling under heavy rains and sales will be impacted," he said.

While the plant was not affected by the rains, water had entered the stockyard area, he said. "We are taking care of the problem and it will be sorted out soon," he added. No estimate had been done so far of the damages or financial losses.

General Motors India, a fully-owned subsidiary of US car major General Motor, announced last week that it would set up a second manufacturing plant in India in Maharashtra and will invest over 300 million dollars for the greenfield project.

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Source: PTI
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