Massive flooding in India’s Detroit disrupts automakers’ production image

Heavy rains in Indian city of Chennai, also known as India’s Detroit, have forced the automakers to close their plants the second time in less than a month.

Heavy rains have caused massive flooding in the Indian Tamil Nadu region, seriously affecting the auto production. The area outside the city of Chennai is known as “India’s Detroit” and as one of the country’s largest auto manufacturing hubs. Ford, Daimler and Nissan were among the automakers which have been affected by the heaviest rainfall in a century closing their plants this week. “Everyone is at home. Wednesday, workers were sent home after a half day, and Thursday we are shut. Friday too, probably,” said an official at Daimler India, which produces commercial vehicles outside Chennai. Ford also said it had to shut down its plant, with an annual capacity of 340,000 engines and 200,000 vehicles. “For the safety of our employees, we have halted production at our Chennai assembly and engine plants on Wednesday,” a spokesman said. “We are carefully monitoring the situation and will return to normal operations as soon as conditions improve.”

Others auto manufactures with operations in the area are Renault-Nissan, Hyundai Motor Co, BMW and motorcycle maker TVS Motors, whose shares were down almost 4 percent on Wednesday. A Renault-Nissan India spokesman said the automaker would be cancelling shifts, but aimed to resume operations once conditions improved as there had been no damage to its plant. The state administration has advised manufacturers to keep their operations shut until Monday, December 7, BMW’s local unit said.

Via Reuters