Floods hit Fiat’s India operations

Operations of Italian car giant Fiat India Ltd, which was producing 150 cars a day, has come to a grinding halt for the last one week with almost 6-feet water-logging and lack of electricity at its Kurla plant. Company officials say the detailed assessment of the damages can be finalised once the electricity supply is restored. ‘‘Only when the assessment is complete will we be able to comment on when the plant will be functional,’’ the company’s managing director P. Castagna said.

The company said its paints shop and the engine assembly line have been severely damaged. The maintenance department is working round the clock to restore the plant. Suppliers have been contacted for the most urgent parts that are needed for the maintenance, Castagna added.

Around 200 brand new cars in the Kurla factory were shifted from the low-lying area to another high area as this is the standard format which is followed during the monsoon. Still it will have to redo the cars before deliveries.

The company says it will make insurance claims when the assessment has been completed. Insurance sources peg the company’s loss at around Rs 40 to 50 crore. ‘‘Fiat will sustain 50 per cent of the cost for spare parts and labour that are not covered by insurance for damages caused to the cars delivered to our Fiat dealership in Mumbai between August and September,’’ he said.