Tata Hispano ceases production at its Spanish unit

Tata Hispano Motors Carrocera in Zaragoza announced to the Workers’ Committee of Tata Hispano Motors Carrocera that it planned to cease production activities in Zaragoza´s factory. The company has invited the workers' representatives to the discussions to formally initiate the consultation period in order to agree on a social plan for the 287 employees working in the factory. “The decision to cease the activity at Tata Hispano Motors Carrocera has been compelled due to economic and business factors, as despite strong investments, there has not been a positive result to reverse the challenging business situation and losses for the plant,” Tata Motors said in a communiqué to the media. In the past five years, Tata Hispano Motors Carrocera operating losses accumulated to over 60 million euros, and there has been a constant decline in its production. These have been a result of consistently falling sales in recent years, primarily due to the worst-ever decline in the bus market, showing a decline of -38pc in the number of registrations. Further, all market evaluations do not predict any positive change in the near future, with the growing accumulation of operating losses making the plant production unviable. Tata Hispano Motors Carrocera has informed the Workers Committee about the company’s decision to definitely cease the production of the factory. The production activity is expected to stop in October 2013 after fulfilling the commitments to deliver current orders.