Mumbai, Sept. 24: Tata Hispano Motors Carrocera, a 100 per cent subsidiary of Tata Motors and engaged in the manufacturing of bus and coach bodies, is stopping production at its Zaragoza facility in Spain following mounting losses.
The company has invited the workers’ representatives to discuss a social plan for the 287 employees of the factory.
A company statement said economic and business factors prompted it to stop production at the unit. It added that even strong investments had not been able to reverse the challenging business situation.
In the past five years, Tata Hispano Motors Carrocera’s operating losses accumulated to over 60 million euros even as there was a constant decline in its production.
The company attributed this to a consistent fall in sales in recent years owing to the worst decline in the bus market, which fell 38 per cent in terms of registrations.