JOIN USToyota Kirloskar to shut plant for three days a week,to operate at 30% capacity
Production will be suspended on Mondays and Fridays between April 25 and June 4 and even on a working day the production of car will be less, the company said. As result TKM will operate only at 30 per cent of its installed capacity of 12,500 cars in a month during this period. Since Sunday is a closed day, TKM, effectively will work for 4 days a week.
The move is ironical as the company started its second shift in the second plant just about a month ago to enhance production of its popular sedan Etios which has close to five months waiting period. There is also a waiting period for its popular vehicle Innova. Toyota also clarified that all permanent employees, including workers on the shop floor, will get their pay as usual and there will be no lay off.
“It is important to note that this is a necessary response to a short term supply issue and we intend to restore normal operations as soon as possible,” TKM Managing Director Hiroshi Nakagawa said. “Our focus is on ensuring optimum stock management to reduce the impact on our customers from the immediate production shortfalls.”
There will be no impact on TKM’s service and spare parts supply operations and customer services at the dealership will be conducted as usual, the company said.
TKM Deputy Managing Director (Commercial) Shekar Viswanathan said, "The company primarily imports engine and transmissions from Japan and other region and also from Toyota’s plant in Thailand. But, even if we import some components from other countries, it is somehow linked with Japan."
Anticipating shortfall in supply TKM Deputy Managing Director Sandeep Singh added “It may be difficult to avoid the inconvenience caused to our customers. We will try to minimise any delivery delays.” The company also said production schedule post June 4th will be decided upon in due course. TKM’s plants at Bidadi, near Bangalore, has a total production capacity of 150,000 vehicles in a year. In the financial year 2010-11 TKM sold 64,863 Innova, 10,707 Corola, 8,101 Etios and 417 Camry.