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Karachi: Auto maker re-hires 400 sacked workers - LahoreEstate - 11-01-2009 05:18 AM
KARACHI: After some signs of recovery in sales from April onwards, Pak Suzuki Motor Company Limited (PSMCL) has re-inducted 400 contractual workers and also hired some fresh permanent staff during July-August period this year.
The company had removed around 600 contractual workers (hired by the PSMCL’s contractors) early this year due to massive fall in sales, but retained permanent staff. This was revealed by Managing Director PSMCL Hirofumi Nagao while responding to Dawn queries on Friday.
He said as the demand was growing and currently the company was running on extended one shift basis.
On recent increase in prices, he said the company had been striving not to increase prices but to find ways and means to offset negative impact due to appreciation of foreign currencies against the rupee.
However, it had become necessary to go for minimum price hike but a substantial portion of negative impact was being absorbed by the company. The company had reduced prices twice in April and July in addition to price cut after withdrawal of five per cent federal excise duty, he said.
He was of the view that price increase would hit car sales to some extent. ‘The major threat is not the price but the law and order situation. If it remains normal then the auto sales will continue to improve,’ he said.
On falling car financing through banks, he says keeping a car has become a necessity now. The sales nowadays are mostly retail sales which mean that the cars are going to genuine buyers or end users. Those who need a car they will buy and car buying will continue. However, security conditions need to be improved.
When asked that car vendors had been blaming the assemblers for using imported parts instead of locally-produced ones, he did not give a clear answer but said ‘there are certain quality issues at the vendor side which the company is trying to resolve.’
Pak Suzuki has achieved maximum localisation and efforts are being made to further increase its level in the products. Making parts local and increase localisation makes a company more competitive in terms of cost control, he added.
On premium on spot sales and action taken against authorised car dealers, Mr Nagao said the company followed no discount no premium policy. ‘The company keeps on warning its dealers not to indulge in such practices.’
He added that the best way to counter premium issue is to narrow the gap between supply and demand. Pak Suzuki has continuously increased its production to meet the market demand. ‘In our case, situation is under control and there is no such big issue,’ he added
http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/business/11-auto-maker-re-hires-400-sacked-workers--il--05