Nokia X not being manufactured in India

Nokia X not being manufactured in India
While the decision to make the Nokia X in China may not have been "directly" related to the tax dispute Nokia is having with the Indian government, the tax bills that are being stacked against the Finnish icon certainly were a significant factor of consideration.

Nokia’s Chennai manufacturing facility has been hit not only with a government takeover, but with three separate demands for huge amounts of money to settle alleged tax bills and allow a transfer of the asset to Microsoft once the acquisition of Nokia Devices and Services closes in the coming days.

The main driver of the decision to make the Nokia X line of Android powered devices in China was apparently the level of investment that would have been required in retooling the Chennai plant was not deemed as acceptable (no doubt compounded by the hundreds of millions of dollars being sought by Indian officials).  Such investment decisions look at return on investment potential, and with the liabilities being assessed against this facility, Nokia likely did not think too long or hard about this decision.

Moreover, Nokia has another facility that just came on line in Vietnam which was also a consideration in how the company will make and distribute its products. Employee union representatives in Chennai have complained that Nokia has been reducing production levels at the manufacturing facility in India.

Nokia is investigating its options about how to address the Chennai situation, and shutting down the plant altogether is not a farfetched possibility. 8,000 people work at the Nokia plant in Chennai. The facility has become a focal point of distress between Indian officials at a state and national level, Nokia and Microsoft.

source: The Hindu

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14 Comments

1. rodneyej1

Posts: 3576; Member since: Jul 06, 2013

All I care about is if MS gets that huge plant in India... I just want MS to be able to make as many Lumia devices necessary so that more popular can enjoy Awesome WP software on the best hardware available...

2. rodneyej1

Posts: 3576; Member since: Jul 06, 2013

More people...

12. sgodsell

Posts: 7437; Member since: Mar 16, 2013

Yeah. Typical Microsoft zealot. They don't care about scruples or morals. Just like the Nokia X line of devices are using the Android name to promote Microsoft services and apps only, with no Google services or apps.

14. rodneyej1

Posts: 3576; Member since: Jul 06, 2013

Morales?... Get a life!.. MS doesn't put money in my pocket.. I could care less.. All I care about is the WP software they develop, and the Lumia devices they will be making.... Its people like you who don't have a real life that try to get involved in the political side of these things... Just smartphones dude... Listen to yourself.. "Morals"... Grow up!

5. fireblade

Posts: 717; Member since: Dec 27, 2013

nobody cares

6. rodneyej1

Posts: 3576; Member since: Jul 06, 2013

But you.. The person who appears on every WP, Nokia, MS related article.. Prove you don't care.. Don't show up!... Until that happens then we'll keep know that at least you do care... Or, are you nobody?

3. threed61

Posts: 259; Member since: May 27, 2011

So India could not only lose 8000 jobs, but other companies will be hesitant to take over the facility in case they might be subject to extortion as well. Excellent way to grow your economy.

4. Gaurav008

Posts: 328; Member since: Jul 20, 2012

Our present economy policies suck big time! Hoping for a change in the government in the upcoming elections.

11. haseebzahid

Posts: 1853; Member since: Feb 22, 2012

yes they first scrwedup neighbouring countries economy now they going for their own. their future generation will be proud of them

7. anirudhshirsat97

Posts: 408; Member since: May 24, 2011

Not to make it a political issue but the Current Indian govt is pathetic. Most big and small, Indian and foreign companies want modi to come to power. Also, unless Nokia prove they don't owe the money in court, which they haven't, they have a duty to pay the taxes ,just like any other company. Loosing 8000 jobs will be a big blow, but that doesn't mean one should allow rules to be broken. Vodafone won their case in court, and Nokia should follow the same path of they feel they are correct.

8. BigBoss10

Posts: 279; Member since: Aug 31, 2012

WHAT DOES THE FOX SAY........... :D

9. mayur007

Posts: 593; Member since: Apr 10, 2012

only thing i can say dont worry nokia india govt sucks right now

10. simple555

Posts: 2; Member since: Jan 09, 2014

Suck nokia, if u dont care abt india, then indian will also throw ur phones out n buy other phones,

13. corporateJP

Posts: 2458; Member since: Nov 28, 2009

This is a tangled web...

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