Tata Motors Passenger Vehicles Ltd.

Tata Motors’ Spanish arm has planned to cease production at its Zaragoza plant thereby impacting entire workforce of 287 employees. The arm had accumulated operating losses of 60 million euros in the past five years. The decision to cease the activity 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.

The company’s Spanish subsidiary - Tata Hispano Motors Carrocera, has informed the workers committee about its decision to cease the production of the factory in October 2013 only after fulfilling the commitments to deliver current orders.

Besides, the arm 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.