Tata Hispano ceases production at its Zaragoza plant

Tata Hispano Motors Carrocera in Zaragoza, Spain, announced to the Workers’ Committee of Tata Hispano Motors Carrocera that it planned to cease

By Ameya Naik | on September 25, 2013 Follow us on Autox Google News

Tata Hispano Motors Carrocera in Zaragoza, Spain, announced to the Workers’ Committee of Tata Hispano Motors Carrocera that it planned to cease production activities in Zaragoza´s factory. The decision to cease the activity at Tata Hispano Motors Carrocera has been compelled due to economic and business factors.

Despite strong investments, there has not been a positive result to reverse the challenging business situation and losses for the plant. In the past five years, Tata Hispano Motors Carrocera’s operating losses accumulated to over 60 million euros, and there has been a constant decline in its production.

The production activity is expected to stop in October 2013 after fulfilling the commitments to deliver current orders. Tata Hispano Motors also announced that it had received an offer from the Benseny Group. This proposal, which is not a purchase offer, is being pursued to explore the possibility of achieving continuity of Zaragoza factory.

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