Maruti Suzuki Declares Lockout, Shares down for the 11th straight session image

Indian carmaker Maruti Suzuki declared a lockout at its Manesar factory after workers at the plant rioted Wednesday, starting a fire that killed a human resources manager and injured nearly 100 employees.

The company is suffering a daily production loss of 500 million rupees ($9.1 million) to 680 million rupees according to a Suzuki Motor Corp spokesman.

In addition, Shares in Suzuki Motor Corp. (7269) which owns a majority stake in Maruti Suzuki fell for the 11th straight session Monday to 1,381 yen in Tokyo trading (2.9 pct down).

It is expected that all 3 000 union workers at the plant would be charged with murder and attempted murder for the mob attack that caused the death of Awanish Kumar Dev – the human resources executive , Indian police said last week.

Hundreds of police officers are currently camping in the Manesar plant, which is under lockout since last week’s violence. The police are also keeping a watch on the nearby Gurgaon plant of Maruti, where production is continuing normally.

Maruti will not be able to import extra vehicles or shift the lost production to another plant, Maruti chairman RC Bhargava said, raising the risk of supply constraints for the carmaker, which saw its sales slump last year due to weeks of strikes at the same plant.

Maruti is setting up a new assembly line at the Manesar factory with a capacity of 250,000 vehicles a year that will start operations by early next year.