While GM, Toyota, Nissan and Mitsubishi are readying their electric vehicles, a new contender has emerged and is aiming to beat them all to the punch. Tata motors, in conjunction with Norway’s THINK!, plans to launch an electric car themselves. Reuters reports that the car will be based on the Tata Indica and be launched in Norway within one year. S. Ravishankar, senior general manager at Tata Motors’ engineering research centre, says that the car can run for 175 km (110 miles) to 200 km when fully charged with a “two-pack” battery, but mileage could vary according to the battery used. (Ya think?) There’s little doubt that, if successful, Tata will use the Jaguar/Land Rover global dealer network to sell these cars. “Could I interest sir in a Jaguar XJ? A Supercharged Range Rover sport? A Tata Nano? or an Electric Tata Indica?” Uh, maybe not.

Commentators criticize GM’s executives for being “out of touch” and “detached from reality.” Nonsense. Reuters reports that GM’s COO (and CEO in waiting) spoke the truth before jobbing journos at the opening of a $200m production plant in Talegon, India.  Yes, after revising its ‘08 sales estimates gently downwards– twice– and talking about an “economic recovery” at every possible opportunity,  Fritz Henderson has finally admitted that GM’s biz is on the skids all the way into ‘09 [as stated above]. In fact, it’s so bad that he might even stop saying the rest of the world is enough. “The most important thing we can do is to turn around the North American business,” Fritz  pronounced. Unfortunately, old habits die hard. Henderson returned to Ye Olde developing countries Spin. “We see greater consumer resilience in emerging economies. We expect growth in China, India and other emerging markets will continue.” Nick Reilly (another GM executive) rogered that. “We are on track for full-year profit growth in Asia despite the hit we took in Q2.” Characteristically, Mr Reilly didn’t state a time line for this recovery. But GM’s got big plans. Forbes reports GM’s new Indian plant can crank out 140k units a year. With The General’s total regional sales running at about 72k units p.a., they’ve got some work major ahead of them. Either that or a shitload of surplus production capacity.

Automotive News (sub) reports that Indian tractor firm Mahindra and Mahindra has delayed the US launch of its Appalachian pickup, built in Chennai, India. M&M's American distributor Global Vehicles was ready to start chasing its goal of 50k annual sales of the diesel four-banger light truck, when its CEO got a call from Mr Anand Mahindra himself. The message was simple: "My family's name is going onto this vehicle, and it's not going to fail." Mahindra is using the delay to log some 3.2m American miles on 25 trucks in hopes of fine-tuning it for the US market, with a particular eye on reliability. 324 dealers across the company have signed up to sell the Appalachian, but most have not yet built stores, so the delay could only help there as well. Oh, and there's one more thing… the diesel hasn't passed the EPA's new 50-state diesel standards. Global Vehicles and M&M swear on a stack of bibles that it will pass with flying colors, but with the price of diesel staying high, efficiency ratings will be crucial to the Appalachian's success. And since they've got the extra time, maybe they'll find some clever way to explain why an Indian truck has been named after a region of America. Maybe.

We reported earlier that new Jag and Landie owners Tata Motors want to take its once-proud luxury brands back upmarket. According to Auto Motor und Sport, boss Ratan Tata has suggested to investors that Jaguar could revive the Daimler brand to take on Bentley and Rolls. Daimler as in Mercedes? Nein. A little history… Gottlieb Daimler sold his cars in Germany under the Mercedes name. He also licensed the construction of his engine in England. Jaguar bought that company, known as Daimler, in 1960. By the time Ford bought Jaguar in 1989, the Daimler name had become [more or less] a Jaguar trim line, denoting the top level of XJ Sedans in every market but America (where it was called the Vanden Plas to avoid confusion with Daimler-Chrysler). Mercedes-Benz paid Ford $20m for non-exclusive rights to the Daimler name. Ford then sold the Jag, Land Rover and Daimler brands to Tata Motors. Now, for those of you who think think that reviving the storied Daimler name is a no-brainer for Ratan's mob, I have one word: Maybach.  

Tata's Nano will officially become the world's cheapest car when it hits the Indian market this October. Sure, Tata blew its 1 Lakh ($2,500) price target, thanks to rising steel costs, but demand is still expected to exceed supply. Or so says Tata Chairman Ratan Tata [via Automotive News, sub]. Judging by the number of variants said to be in development, Tata's putting his money where his mouth is. A diesel version is on the way, and electric or compressed-air models could be next. And adding eco-friendly drivetrains can only help if the Nano actually attempts a launch in Europe in four years, as is rumored. After all, as an EV the Nano's weaknesses (made of cardboard, rolls in crosswinds) are actually strengths (light, cheap). And at the price point, it's more than competitive with the Zap Xebras of the world (pending a convincing road test). This may be why Automotive News Europe (sub) reports that Fiat is considering selling the Nano. "We have held talks about the Nano being marketed in markets where Fiat has already a strong presence," says Ratan Tata. "I am open to consider a partnership." Which means we'll all be able to buy the Tata Nano with a Fiat badge at a MINI store in, say, 2010?

Anyone remember the 1932 film If I Had A Million? Didn't think so. Long story short, a dying rich man picks eight people at random from the phone book and gives each of them $1,000,000. The best sequence (of course) belongs to W.C. Fields. Fed-up with "road hogs" and "Sunday drivers," he buys a phalanx of jalopies and begins to run the offending cars off the road. Then, when both the hog and Fields's jalopy have been totaled in a ditch, he climbs into the next junker (he's paying a a bunch of kids to follow behind him in "fresh "cars) and looks for a new target. I mention this classic scene because the Tata Nano's $2,500 price has given me ideas. I mean, for not that much money I could remove a lot of first gen Dodge Caravans from the road [Ed: Jonny's convinced that all traffic everywhere would improve if still existing K-Car Dodge Caravans were outlawed]. However, like most of my fantasies, this one ain't going to happen. Looks like the rising cost of steel is turning into the rising price of Tata Nanos. For their part, Tata ain't saying nuthin' 'bout nuthin'. But Automotive News [sub] is reporting that the Indian automaker is trying to cut deals with its suppliers to keep raw material costs down. Luckily for Tata, they happen to own Tata Steel Ltd., the largest steel producer in India. However, as John Adams said, facts are stubborn things– steel prices are up. As for my twisted plans, I should be able to get all the Hummer H2s I need for less than $2,500 real soon. 

Those of you wishing for a sensible, small, utilitarian diesel engined pickup truck are about to get your wish. The Wall Street Journal reports Mahindra & Mhaindra's plan to release its Appalachian model mid-size pickup is on schedule for 2009. Previous reports  tell us that the truck will feature a 2.2-liter, four-cylinder diesel rated at 150hp and 300 ft. lbs. Preliminary specifications tell of a six-speed automatic transmission, electronic stability control and a 7.5 ft. long bed. Mahindra's importer Global Vehicles (GV) has a… er… colorful history. Some years ago, GV tried to import a mini-Hummer style vehicle from Aro S.A. of Romania. The effort went down in flames; the Romanians could never jump the safety and emissions regulatory hurdles. Mahindra, on the other hand, is a far more capable company than Aro and is already a force in the U.S. farm tractor market.  More fantastic is Mahindra's claim that it will release a diesel-electric hybrid version in (you know it, you love it) 2010. Competition in the shrinking U.S. light truck market shows no signs of letting up. Now if it could just begin…

As Mark Phelan pointed out, GM would dearly love to unload the unloved HUMMER brand on some overseas sucker investor. The rumor mill is gristing the idea that India's Mahindra and Mahindra may scarf the tree hugger's least favorite vehicle of all time, ever. It seems only natural; the company's been building the AXE, a Humvee knockoff, for the Indian Army. Just-Auto cites an anonymous "senior official at M&M" who told them "Mahindra is very keen on acquiring the Hummer, because of many reasons, but I can't go into all of them but for one it is the most seen vehicle on TV in any country, these days at least the military version of it. It is still too early to talk of prices and timeframes but we are in the process of designing a civilian version of the Mahindra AXE and owning the vehicle it was modelled [sic] after would make a lot of sense." Not only that, HUMMER would give them a well-known premium brand to compete against rival Tata's recent Land Rover acquisition. Analysts think the HUMMER brand could put about $750m into GM's coffers. Or not.

It's officially official and completely complete. Ford has finalized the sale of Land Rover and Jaguar to Tata Motors. And boy are they not excited! In fact, the last sentence of the terse, four paragraph press release reads exactly like a rejection letter: "Ford Motor Company wishes the Jaguar Land Rover management team, its employees and the new owners every success for the future." Automotive News [sub] reveals that David Smith is the new boss of the two former Ford-owned rejects millstones automakers. "Smith is Jaguar and Land Rover's chief financial officer. He has been the company's acting CEO since the April 20 death of CEO Geoff Polites." So, steady as she goes? Yeah right. Anyone want to make any guesses on how long it'll be before we start seeing Tata's influence on the model lineup and the "Jaguar Land Rover management team?" Or they move production from Merrye Olde England to India? Meanwhile, Detroit's profit-drunk SUV party is now, officially over. 

Even before Tata Motors bought Jaguar and Land Rover from Ford, the Indian automaker's investors were not well pleased at the prospect. A dropping share price reflected their central worry: $3b or so in debt. These worries are proving well founded. Tata has announced a $1.86b equity share offering. The stock offering amounts to a 30 to 35 percent increase in equity capital; investors are heading for the hills rather than watch their shares take the hit. "The magnitude of this offering is unexpected and could adversely affect short to medium-term stock performance," Citi analyst Jamshid Dadabhoy tells the Detroit News. Amit Agarwal of Kotak Securities tells Market Watch that servicing all the extra debt could cost Tata 19 to 22 percent of its earnings per share. Meanwhile, Jaguar and Land Rover need considerable investment to develop the products needed for profitability, and Tata has yet to build its much-vaunted Nano. Tough times.