Toyota Motor Corporation
) announced that it will recommence production in its Indian
assembly plants, which were closed on March 16, 2014, due to
demands for wage hike, which resulted in disruption in production
and unrest among the laborers. Both the plants, which are located
outside Bangalore, are expected to be restart operations from
March 24, 2014.
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Toyota employs around 6,400 workers at these plants with
production capacity of 310,000 vehicles per year. The vehicles
produced in the plant include Camry, Corolla Altis and Etios, the
Innova van and the Fortuner sport utility vehicle.
Toyota stated that workers can rejoin from the following week
after signing a code of conduct. However, the wage issue has not
been resolved yet.
Toyota has been manufacturing vehicles in India since 1999.
However, the unrest in the emerging markets is affecting its
operations. Toyota recently revealed that protests against the
Prime Minister in Thailand, which is its second-largest
production base in Asia after Japan, might change its future
investment plans in the nation.
Although Toyota is refusing to raise wages in India, recently it
agreed to increase the base pay of workers in Japan, following
the Prime Minister's efforts to convince employers of the same.
For the first time since the recession in 2008, the automaker is
raising the base pay of the Toyota Motor Workers' Union members
by 0.8% of last year's average salary or 2,700 yen ($26) per
Additionally, Toyota will increase average wages by 7,300 yen due
to seniority or promotions. Thus, the total raise comes to about
2.9%. Additionally, Toyota accepted the union's request to
increase the average bonus to 2.44 million yen, which is also the
highest since 2008.
Currently, Toyota carries a Zacks Rank #2 (Buy). Some other
automobile stocks worth considering are
Tata Motors Limited
Tesla Motors, Inc.
). TTM and DDAIF sport a Zacks Rank #1 (Strong Buy), while TSLA
has a Zacks Rank #2.