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Indian Workers End Strike at GM, Ford Supplier

Both General Motors and Ford were forced to halt operations at their US crossover plants due to a strike at their Indian supplier that provided transmission parts to both companies. Workers at Rico Auto Industries finally ended the six-week strike and returned to their normal work schedule, a company official announced.

"We had a settlement last night," Surendra Singh, senior vice president for human resources at Rico Auto Industries told Reuters on Friday. "Within a day or two, we'll be able to achieve 100% production."

The strike started on September 21, with workers deciding to halt operations after the board suspended some of the employees for indiscipline.

General Motors said in late October that it idles operations at the Delta Township facility in Michigan for one week due to a "critical parts shortage". The plant was building Buick Enclave and GMC Acadia, with daily output currently at 900 Enclaves and Acadias, with the transmission parts provided by the Indian supplier.

“At this this time we anticipate only being down one week. We’ll continue to monitor the situation and notify the employees,"
GM’s spokesperson Heidi Magyar said at that time.

Ford was affected as well, with the Oakville, Ontario plant idled for one week as well due to the same reason. The company this way lost thousands of Ford Edge, Flex, Lincoln MKZ and Lincoln MKT units.

“We have an excellent rapport with our OEM (original equipment manufacturer) clients and they know us for our quality of products and our adherence to delivery schedules. There could be a temporary loss in our business moving to our competitors due this unrest,” Surendra Chaudhury, Rico vice president, explained the shortage in October.

The Indian supplier is now looking at ways to boost production in order to address the parts shortage.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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