Honda suffers $27 million loss over Indian labour unrest
Posted: Thu Jul 28, 2005 1:38 pm
Honda suffers $27 million loss over Indian labour unrest
AFP, TOKYO
July 27: Japan's Honda Motor has already incurred a loss of about three billion yen (27 million dollars) through lost output during a violent labour dispute at its Indian unit, a news report said today.
Average production at the factory on New Delhi's outskirts dropped to 400 motorcycles a day in June, although it gradually recovered somewhat to 1,000 units after some employees returned to work, the Nihon Keizai Shimbun said.
Honda can brace for further losses if there is more trouble at the plant, the economic daily warned.
A Honda spokeswoman said the company was checking the validity of the reported loss figure. Honda is to announce its April-June results later Wednesday.
At least 130 people have been injured in two days of clashes between Indian police and angry workers at Honda's plant in Gurgaon, a satellite town of the capital.
Television footage Monday showed bleeding workers being dragged by their feet and policemen kicking and punching men lying inert on pavements.
The workers had been seeking to submit an appeal to district officials demanding reinstatement of 30 sacked employees when the violence erupted.
India has been aggressively wooing foreign investment and liberalising investment norms in a bid to stimulate economic growth and spur development.
Another report adds: Honda Motor said Wednesday its net profit fell in the first quarter to June as it incurred additional costs but it raised its full-year earning projections with sales holding strong.
The Japanese automaker's net profit slipped 3.1 per cent to 110.67 billion yen (one billion dollars) in the June quarter with pretax profit falling 17.1 per cent to 144.31 billion yen.
The company said pretax profit was hit by higher sales and general administrative expenses and by losses on derivatives trade. Sales rose 9.2 per cent to 2.26 trillion yen.
"Domestically, sales of the Step Wagon and Airwave models were strong. In the North American market, Ridgeline pickup trucks, the Odyssey minivan and Acura RL did very well," executive vice president Satoshi Aoki told reporters.
http://independent-bangladesh.com/news/ ... bs.htm#A15
AFP, TOKYO
July 27: Japan's Honda Motor has already incurred a loss of about three billion yen (27 million dollars) through lost output during a violent labour dispute at its Indian unit, a news report said today.
Average production at the factory on New Delhi's outskirts dropped to 400 motorcycles a day in June, although it gradually recovered somewhat to 1,000 units after some employees returned to work, the Nihon Keizai Shimbun said.
Honda can brace for further losses if there is more trouble at the plant, the economic daily warned.
A Honda spokeswoman said the company was checking the validity of the reported loss figure. Honda is to announce its April-June results later Wednesday.
At least 130 people have been injured in two days of clashes between Indian police and angry workers at Honda's plant in Gurgaon, a satellite town of the capital.
Television footage Monday showed bleeding workers being dragged by their feet and policemen kicking and punching men lying inert on pavements.
The workers had been seeking to submit an appeal to district officials demanding reinstatement of 30 sacked employees when the violence erupted.
India has been aggressively wooing foreign investment and liberalising investment norms in a bid to stimulate economic growth and spur development.
Another report adds: Honda Motor said Wednesday its net profit fell in the first quarter to June as it incurred additional costs but it raised its full-year earning projections with sales holding strong.
The Japanese automaker's net profit slipped 3.1 per cent to 110.67 billion yen (one billion dollars) in the June quarter with pretax profit falling 17.1 per cent to 144.31 billion yen.
The company said pretax profit was hit by higher sales and general administrative expenses and by losses on derivatives trade. Sales rose 9.2 per cent to 2.26 trillion yen.
"Domestically, sales of the Step Wagon and Airwave models were strong. In the North American market, Ridgeline pickup trucks, the Odyssey minivan and Acura RL did very well," executive vice president Satoshi Aoki told reporters.
http://independent-bangladesh.com/news/ ... bs.htm#A15