Renault·Nissan Face Double Setbacks with Factory Closure Amid Lawsuit Battle in India

[Asia Economy Reporter Yujin Cho] Renault and Nissan, operating a joint venture factory in the Indian market where the spread of COVID-19 is increasing, are facing double difficulties due to semiconductor supply shortages and union lawsuits.

According to Bloomberg and other sources on the 24th (local time), the union of the Renault-Nissan joint venture factory in Tamil Nadu, India, filed a lawsuit demanding a halt to operations against the company and the state government, claiming that COVID-19 prevention guidelines were not properly followed.

The union argues that safety is compromised because COVID-19 prevention guidelines are not properly observed at the production site and has announced plans to start a strike demanding stronger countermeasures.

Tamil Nadu, known as the 'Detroit' of India due to its high proportion of the automobile industry, is considered one of the regions with the most severe recent COVID-19 spread, with more than 30,000 new confirmed cases per day on average last week.

In response, the local government issued a lockdown order until the 31st of this month but allowed some factories, including automobile plants, to continue operations.

Renault and Nissan have denied the claims, stating that they have taken all necessary preventive measures such as reducing the number of work shifts, and are appealing that operations cannot be stopped to meet domestic and export order volumes in India.

Bloomberg reported that at the next hearing scheduled for the 31st at the Madras High Court, the company plans to argue this point based on rebuttal evidence.

This joint venture factory, with an annual production capacity of 480,000 units, has reduced working hours from three shifts to two shifts due to the impact of COVID-19 and plans to inform the court that it follows safety protocols including COVID-19 vaccinations.

A Renault-Nissan spokesperson said via email, "We place great importance on the health and safety of our employees and comply with all rules and regulations necessary for a safe working environment."

The Renault-Nissan joint venture factory began production in 2010 and currently employs 1,500 workers.

Earlier, Hyundai Motor also announced it would suspend operations at its Tamil Nadu factory for five days. After two workers at this factory collapsed due to COVID-19 infection, other workers expressed anxiety, and several workers staged a sit-in protest that day.

This content was produced with the assistance of AI translation services.