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Renault, Nissan and Hyundai face shutdowns in India over workers' COVID fears

CHENNAI, India — Automakers Renault, its alliance partner Nissan and Hyundai face temporary factory closures in India due to growing unrest among workers concerned about rising COVID-19 infections. Workers at Renault-Nissan's car plant in the southern state of Tamil Nadu will go on strike on Wednesday because their COVID-related safety demands have not been met, a union representing the workers told the company in a letter on Monday. Hyundai said it would suspend operations at its plant, also in Tamil Nadu, for five days starting Tuesday, after several workers staged a brief, sit-in protest on Monday amid rising cases in the state. "The management agreed to close the plant after workers expressed concerns over safety after two employees succumbed to COVID," E. Muthukumar, president of the Hyundai Motor India Employees Union, told Reuters. The unrest highlights the challenges companies face in India amid a huge wave of COVID-19 infections, an overwhelmed health system and a shortage of vaccines which is making employees more fearful. Tamil Nadu is one of the worst hit states with more than 30,000 cases a day last week. The state, an auto hub known as India's Detroit, has imposed a lockdown until May 31 but allowed some factories, including auto plants, to continue operating. The strike threat at the Renault-Nissan plant came ahead of a court hearing on Monday over allegations from workers that social distancing norms were being flouted and factory health policies did not sufficiently address the risk to lives. Renault-Nissan has said it is following COVID-19 safety protocols. At the hearing, a lawyer for the workers argued that while the company had reduced the number of shifts, production numbers had not been cut and the headcount remained the same leading to crowding on the factory floor. The company told the court it had reduced the workforce to around 5,000 from 8,000. It also said it had vaccinated employees over 45 and was willing to inoculate those under 45 if vaccines were made available. The two-judge bench presiding over the case said that while the health of workers is paramount, if industries go down there will be no place for them to work. They also said the company must not take advantage of the exemption granted by the state and should reduce production to meet only necessary export orders. "The production should have fallen ... You also have to assuage the feeling of the workers," said the court, which will next hear the case on May 31.

Will Nissan's Cummins deal upset Ram's marketing mojo? [w/poll]

Ram has used Cummins engines in its heavy duty trucks since 1989, and it is the only pickup truck brand to use products from the Indiana-based engine maker. With the announcement that the next Nissan Titan will also use a Cummins powerplant, and a Nissan spokesman having already said "We will definitely leverage the Cummins brand name," a piece in Automotive News wonders whether the deal will affect the way Ram markets its tie-up with Cummins.
The question really is, how intense is this competition? While it is the first time that trucks from two different brands have used Cummins engines, they'll be two different engines in two different kinds of trucks; Nissan is going to put a 5.0-liter turbodiesel in a non-heavy-duty Titan, Ram only uses its 6.7-liter, inline six-cylinder turbodiesel in heavy-duty offerings. The diesel that Ram will offer in its light-duty, half-ton 1500 is a 3.0-liter V6 EcoDiesel with 240 horsepower and 420 pound-feet of torque - compared to about 300 hp and 550 lb-ft expected from the Titan's Cummins - and its marketing so far has focused on the fuel economy gains.
If Nissan was going to prove its commitment to the segment, it had to do something compelling. If we're talking about sales competition between Ram and Nissan, Ram has sold 201,633 trucks as of July this year, up 24.2 percent, 31,314 of those sales coming last month; Nissan has sold 10,020 Titans through the end of July, down 21.1 percent, and just 1,168 in July itself. Nissan's new truck boss - who hopped there from Ram - said that buyers have asked for a powerful turbodiesel in something other than a heavy duty pickup, and from what we've read on various comment boards, the pickup truck crowd is excited about Nissan's move.

Daimler and Nissan venture to build cars in Mexico

Nissan and Daimler have been partnering ever closer for years, and now an unnamed source has told Reuters that the automakers have agreed to a 50-50 joint venture in Mexico that would build Infiniti and Mercedes-Benz models. Given that the rumors about just such a deal go back nearly six months and similar rumblings are years old, this arrangement has been a long time coming.
The insider tells Reuters that a memorandum of understanding was signed between them last month to build the Mercedes GLA-Class and new Infinitis at Nissan's Aguascalientes factory. The rumor didn't say when production would begin. It wouldn't be the first time the two automakers have decided to share this platform - Infiniti will build its Q30 compact on it in the UK next year.
The partnership between the Renault-Nissan Alliance and Daimler goes back to 2010 when the companies signed an agreement to share engines, factories and platforms. Since then, products of the partnership have included the underpinnings for the next-generation Smart and Renault Twingo and shared engines among some other models.