After making rather disparaging remarks about the management culture at Jaguar Land Rover, Tata CEO Ratan Tata is attempting to do some major damage control after he criticized the Brits in a May, 2011 interview with The Times.
Although the article is hidden behind a pay wall, Tata is widely quoted as saying that “…nobody is willing to go the extra mile, nobody.” At the Delhi Auto Show, Tata essentially backtracked on his comments, saying his fairly explicit comments were misunderstood.
Ratan Tata is unmarried and has no children. So he’s now on the hunt for a successor and because of the lack of Tata scions (Toyota joke here) he’s looking outside of the family. Very far outside the family. NDTV Profit reports that Ratan Tata and Carlos Ghosn had a closed-door meeting in Mumbai a few weeks ago and Ghosn is a likely candidate. After all, Ghosn presided over the launch of the Dacia Logan which was a success in India (not to mention Europe), and now Renault-Nissan are gunning for Tata’s Nano in a link-up with Bajaj. Sounds like Ratan Tata is trying to hire away the enemy general. But is Ghosn the man to tackle Jaguar-Land Rover? And how would Ghosn’s Nissan-Renault empire cope without him?
Ford were mighty relieved when it managed to off-load it’s British marques, Jaguar and Land Rover, to Tata. Now after 1 year and 9 months of ownership, causing the normally profitable Tata Motors to fall into a £41 million pound loss and falling sales, how do you think Tata are feeling about the purchase of JLR? Sad? Depressed? Suicidal? According to steelguru.com, Ratan Tata is surprisingly optimistic.
If we assume that the global meltdown is a phenomenon that will be over in the near term, I think we will look back and say that these are very strategic and worthwhile acquisitions. There were many questions raised regarding whether these two large acquisitions Corus and JLR are worthwhile and whether the prices were right in terms of being at the top of the market, virtually. My view on that is that if you want to buy a house and that house is of a particular value, then it may not be there if you wait