India's Tata Motors unit to stop production at Spanish plant
NEW DELHI, Sept 24
NEW DELHI, Sept 24 (Reuters) - A unit of India's Tata Motors Ltd said it will stop making vehicles at a Spanish plant from next month because of mounting losses and no signs of a turnaround in muted demand in the near future.
Tata Hispano Motors Carrocera said the move to stop production at its Zaragoza factory in northern Spain, would impact all 287 employees, adding it had accumulated operating losses of 60 million euros ($80.96 million) 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 said in a statement.
Tata Hispano Motors Carrocera also said it was pursuing an offer from Spain's Benseny Group to explore the possibility of continuing operations at the factory. It did not say what the offer was for, but said it was not a purchase offer. ($1 = 62.4950 Indian rupees) ($1 = 0.7412 euros) (Reporting by Devidutta Tripathy; Editing by Elaine Hardcastle)