Ashok Leyland may reduce production, cut number of working days
In view of the sluggish demand for commercial vehicles, Ashok Leyland Ltd. is considering the possibility of cutting down on production and reducing the number of working days by one or two days per week. The company is not, however, planning any lay-offs.
Ashok Leyland is considering the possibility of a reduction in working days to deal with the twin problems of power shortage in Tamil Nadu and a slump in the demand for trucks. Wage cuts could accompany the reduction in the number of working days, for which ALL management will work out a deal with labour union officials.
According to industry experts and analysts, the demand for medium and heavy commercial vehicles in India will continue to decline by 5-10 percent in 2009, so apart from Ashok Leyland, other commercial vehicle manufacturers may also cut down on production in the near future.
[via: indiaautomotive]