Source: Financial Express
CHENNAI, India – WABCO joined other companies such as Bosch, Sundaram-Clayton, among other components makers who have had gone on production holidays.
WABCO India, one of country’s leading auto component maker has decided to have production holidays once again due to continued slowdown in the automotive industry.
In a communication to the stock exchanges on Tuesday, the company (now part of the multi-billion dollar auto parts/technology major ZF Friedrichshafen) said that in view of the weak demand and based on customer schedules, it has been decided to work for four days a week across its plants in Ambattur (Chennai), Pant Nagar, Lucknow and Jamshed during March with Fridays being considered as leave.
Earlier, in August last year, the company had observed similar production holidays across its plants in India for number of days owing to overall slowdown in the automotive industry, particularly in the commercial vehicles segment.
WABCO joined other companies such as Bosch, Sundaram-Clayton, among other components makers who have had gone on production holidays.
It may be noted that the commercial vehicle industry has reported a 26 percent drop in the April-January 2020 fiscal due to overall slowdown. The M&HCV segment in particular, where WABCO has major focus, reported a sharp decline of 42.26 percent to 211,361 units.
In February too, almost all the major CV players such as Tata Motors, Ashok Leyland have witnessed slump in their sales as the demand revival is expected only in the second half of next fiscal.
Recently, fair trade regulator CCI has approved acquisition of WABCO Holdings (WABCO) by ZF Friedrichshafen. As per a combination notice filed with the Competition Commission of India (CCI), ZF will acquire 100 percent shares in WABCO via its indirect wholly owned subsidiary Verona Merger Sub, a Delaware corporation, resulting in acquisition of sole control over WABCO.
Earlier in March last year, WABCO India then said in a regulatory filing said that WABCO Holdings has entered into a definitive merger agreement with ZF Friedrichshafen. Under the agreement, ZF will acquire all outstanding shares of WABCO for an equity value of over $7 billion.
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