Ford and GM to Mahindra and Tata: The power shift

Automobiles have been part of history of every country since the beginning of 1900's. Sweden too had Volvo (founded in 1927) at Gothenberg And Saab (founded in 1947) at Trollhattan making their marks all over the world through quality engineering and providing employment all over the country. Jaguar on the other hand was founded in Britain in 1922 when car manufacturing was at its peak. LandRover was just one model under the  After the fall of the likes of Austin, Morris, Standard, BMC, Triumph, Land Rover and many others, what remained was niche manufacturers like Jaguar, Aston Martin, Lotus and Bentley sales of whom do not even touch 10,000 units per annum.Volvo was introduced by SKF as a subsidiary while Saab was introduced by Saab Aerospace as a diversified unit. Volvo was known for safety and Saab was known for its performance cars while Jaguar was a luxury notch above the Germans. During the peak of American Automobile revolution, Saab was purchased by General Motors (GM) in 1989 and Volvo and Jaguar were purchased by Ford in 1999. Land Rover passed through the hands of Leyland, BMC, British Aerospace and  BMW ultimately landing in the hands of Ford. The parent companies of both Swedish brands were looking to focus on their main stream business leading to the sale while the lazy butted Americans wanted ready made technology to be bought by their treasuries which prints US dollar bills 24X7. Jaguar and Land Rover on the other hand were the remnants of a fallen British car industry.

Ford was early to enter recession but Mr. Alan Mullaly had foresight and decided to get Aston Martin, Jaguar, Land Rover and Volvo off their hands. General Motors being bigger in size was also a more corrupt corporation. Directors took heavy pays and left the company draining it of cash and leading into bankruptcy. While Hummer, Pontiac and Saturn died, Saab did find a desperate buyer. A Chinese company named Geely which makes cars using plagiarized technology purchased Volvo while Spyker cars owned by an alleged Russian mobster by GM Vladimir Antonov and Victor Muller purchased Saab. Indian carmaker Tata which was flush with money and wanted knowhow in premium cars purchased Jaguar Land Rover. Now After Spyker cars has failed to revive Saab, Mahindra has shown interest in buying Saab. The concentration of power in the Automotive field has shown a definitive shift from the United States to India. Will TATA and Mahindra repeat the same story that GM and Ford wrote in the 19th century?

Geely is one of the premier Chinese car makers. China has thrived worldwide making cheap imitation products of inferior quality. Wal-mart survives by filling its stores with 99% Chinese products. But off late after growing in size, Geely has been looking outside for quality and knowhow in car manufactury. Volvo happened at the right time in 2008. The motives behind purchase by Ford and Geely might seem same but are not. Ford purchased Volvo along with a stake in Mazda to make its own cars successful. Ford Focus, Ford Kuga and Ford C-Max were successfully built on Volvo C1 platform which also comprised of the Volvo S40, V50, C70 and C30. Geely on the other hand is looking to make a transition to Volvo completely.

Similarly Volvo S80, V70, XC70, XC60, S60 and V60 shared platform with Ford S-max, Ford Galaxy, and Ford Mondeo were based on Volvo Y20 platform. Unlike GM though Ford made no hassles for Geely while giving away Volvo which was a mutual favour. Ford was desperate for cash and buying Volvo was something no major car maker would do since Ford had completely drained all its technology for its own cars. Geely on the other hand knew that a Chinese Brand name would not get it a sound footing outside China and needed a strong brand name. The deal was set. But unfortunately Geely's ambitious plans are a bit larger than What Volvo can accomodate and bit more mainstream for a semi luxury brand. Geely wants to be amongst the major car makers in the world by selling Volvo as a mainstream product. Volvo on the other hand has always had a luxurious image. Not unlike the big three (Mercedes-Benz, Audi, BMW) but still above the likes of GM, Toyota, Honda, Ford and Hyundai. At the moment Volvo's new design philosophy and its precedence in safety, technology and luxury has helped the company reach sales targets but Geely is going to find it the hard way how tough it can be to build a luxury brand. Possibly a compromise they are aware of and are willing to make.

Similar to Volvo, Tata also got a clean sale by Ford. Alan Mullaly had been in talks for sometime to sell of Jaguar and Land Rover as separate brands. Tata Motors has been in the business in India for only two decades. Known mostly for its Indica cabs, the company hardly had any international presence apart from a dealer here or there. Tata Motors as a corporation is one of the biggest in the world and hence, When the time came in snatching up Jaguar for its sedan business and Land Rover for its UV's, Tata was quick to react. Ford purchased the rights to Rover Name worldwide (Rover, MG Rover, Land Rover) to be transferred with the deal. The $3 billion deal was once considered as too much for Jaguar and Land Rover which collectively hardly sold enough cars under Ford. Today JLR sells close to 20,000 units a month.

 Unlike Volvo, Tata has successfully built the Jaguar Land Rover Marque as a luxury marque above the Big three German Marque's which is a feat in itself. Additionally, instead of stripping the cars, the british factory was given the freedom to operate and innovate and build upon its own cars. Today, Jaguar Land Rover is a profit making brand for Tata Motors surprising even the who's who at Ford Motor company. Tata also has slowly learnt to build its own cars more efficiently which is evident in the new Tata Aria. But Tata is yet to exploit the concept of platform sharing especially since there is a huge gap between Tata brand of cars and Jaguar Land Rover cars since Tata is known for the cheapest car in the world (Tata Nano) while Jaguar Land Rover pitch their cars above most Luxurious brands. The best proof that Jaguar Land Rover is a successful brand today is its increasing number of dealers globally and the announcement to actually produce a concept super car (Jaguar C-X16).

Saab's history separates itself from Volvo since the time GM purchased it. GM was quick to transfer knowhow to their American tin cans. But Saab had nothing of importance to learn from GM in return. Though smaller in scale, The Trollhattan based company made better cars in every aspect than the corrupt corporation, which was once the largest car maker in the world. After, stripping Saab for a decade Gm left it to fend for itself. A saab 9-5 launched in 1997 was sold unchanged for 14 years. Surprising, since even mainstream brands like Toyota refreshes their models every year. Such a practice is a strict no-no especially at the luxury end of the market. A Saab 9-3 with minor updates was also sold for 14 years. With only two mainstream cars in its portfolio and half-hearted attempts such as 9-2(Subaru based) and 9-7(Based on old GM platform) Saab was accused of not earning profit except for one year in eleven years. The govt. supported bankruptcy which was but only a curtain on the billions of U.S. taxpayers money mishandled by the top management meant that Saab, Saturn, Pontiac and Hummer had to go. The deal with Koeniggsegg going awry was a giveaway how GM wanted to kill the brand and keep the skeletons inside the box. BAIC (Chinese car maker) quickly purchased the old 9-5 and 9-3 tooling and those interested in reviving the brand reduced to a handful.

 But a desperate Victor Muller and Vladimir Antonov worked out a deal to keep the company up for two decades. But The new management were not an honest bunch either. While the company was struggling to regain lost ground, the new management again was taking fat paychecks while delaying wages. The company soon went under receivership in December 2011 after GM blocked a Chinese deal that could've saved the company. Reason given by GM was that they feared the Chinese Company would compete with GM posing a threat (Which they didn't think while selling the 9-5 9-3 technology to BAIC).

 While GM's Corruption drama with SAAB was unfolding, not the whole world has been a spectator. Apart from Youngman Lotus from China which is rumoured to have lost a couple of hundred Billion Euros, an Indian company has also been studying the proceedings closely. Mahindra known mostly as a UV maker before they tied up with Renault for a small car has expressed interest in buying SAAB. Mahindra learnt things the hard way when their outdated UV'S found it tough to compete but has been quick to utilize its financial standing comprising of strong liquidity. Kinetic's two wheeler business, Logan platform, Reva's electric car business and Korea based Ssangyong Car company which makes cars based on Mercedes-Benz platforms soon found themselves under Mahindra's umbrella. From making three decade old Willy's based UV's, Mahindra has come a long way in the last ten years making cars like the Scorpio, Xylo, Thar and XUV500.

SAAB can prove to be an important landmark for Mahindra since they need a premium brand (Just like TATA built upon with Jaguar) to team it with Ssangyong which has reliable and competent platform but lacks visibility and brand image. Ssangyong's vehicles have been known for their quality and workmanship especially in the UV field. SAAB's worldwide recognition for Mahindra can prove to be a boon. While the chinese have salvaged whatever remained of the technology (GM didn't oppose when Youngman Lotus purchased rights to build cars on the Phoenix architecture), Mahindra seems to be more interested in the brand image itself. Buying SAAB also makes sense since the Plant in Trollhattan will be available for much cheaper along with the tooling now that the company is bankrupt. Integrating Ssangyong cars along with SAAB can prove to be just another Jaguar-Land Rover for Mahindra where Saab makes Luxury cars competing with the Big three German marques and Ssangyong makes UV's on the premium end. Incase, Mahindra misses the point, SAAB has a superlative meaning in Indian languages. (SAAB: Means Master in Hindi and other South Asian Languages)

With the Indian Makers lapping up brands, it is clear that the power reigning in the hands of Americans has clearly moved to India. Mahindra and Tata are creating brand corporations just the way GM once did with Chevrolet, Buick, Cadillac, GMC, Saturn, Pontiac, Hummer, Saab, Opel, Vauxhall and Holden and Ford did with Ford, Lincoln, Mercury, Aston Martin, Volvo and Land Rover. How Mahindra and TATA progress learning from the American Big Three's debacles in the 19th century remains to be seen.

10 cars we need in India

1. Mazda RX-8- How many times have you driven a 1300cc naturally aspirated (non turboed or supercharged) engine that makes 280 horses? Especially one that has one numerous car of the year awards in 2600cc category? Yes, that is precisely why we need the RX-8. Also, the stringent regulations and the fact that Mazda is the only Wankel car maker has led to its death in 2012.

PS: Rx-8 is indeed a coupe sports car but comes with rear suicide doors for easy ingress and egress to the rear seats. It also comes with a 300w Bose sound system for the sound connoisseurs.

2. Mazda Mx-5: If aliens ever did provide us with technology for automobile evolution, this would be it. Famously called the 'Miata'. It meets the 4000 mm regulation for tax exemptions and to perfectly fit those jam packed cities. The car is as much fun to drive in the city as a Lamborghini Gallardo or Ferrari Scaglietti would be on the track. Other Japanese makers tried to compete with the Toyota MR2 and Honda S2000 but nothing has yet survived this car's smiley face onslaught. This topless car competes for attention at the beach too.

PS: Even in such tight and nimble clothing, the MX-5 got 4 star safety rating. The latest MX-5 concept 'Superlight' has been so true to the name, it also lacks a windshield.

3. Scion IQ-Before you notice the car which in itself is an eyeball magnet, it's the brand name. Toyota's answer for the North American burger fat bellied, IQ lacking, Beer thirsty youth. The IQ is small by US starndards but suits perfectly in India. I am not handing out Ferrero Rocher balls for guessing that the IQ here stands for Intelligent Quotient. The sub 3 metre car is something I would definitely purchase for my daily office commute over Tata Nano and Maruti Suzuki Alto and Hyundai Eon and also bigger cars like Maruti Suzuki A-Star, Hyundai i10, Chevrolet Beat, Maruti Suzuki WagonR, Nissan Micra and Ford Figo. The car also has numerous customization possibilities which Toyota is exploiting in the Japanese market.

PS: The car has nine airbags, vehicle stability control, traction control, anti-lock brakes, brake assist and electronic brake distribution.

 4. Cadillac SRX-  I am a fan of big cars. I drive Jap cars but still the lure of mammoth cars with mammoth engines wets my mouth. But SUV's are not my forte. But it is hard not to love the SRX with its 3.6 V6 engine and that Cadillac grille shouting 'I am the king of bling-bling'. Crossovers are the latest trend and SRX is the king of that trend whether it be style, features, interiors or plain sex appeal. Finally something Scarlett Johansson can use to look more deadly and American.

PS: GM had to cease production of a smaller engine option due to lack of sales. That's when the 3.6 V6 was launched to accompany the 3.0 naturally aspirated model option.

5. Cadillac CTS: If I have to glance at a BMW 6 series, Audi A5 or Mercedes-Benz E-class coupe, my eyeballs will stick at te CTS. We need the CTS because because we yawn everytime seeing the same old Audis, BMW's and mercedes- Benz's filling the road. Also, we need a car with so much bling it shines as bright as the sun and still manages to look like a thousand bucks.

PS: The CTS Coupe will be Cadillac's first coupe since the Eldorado, which was discontinued in 2002.

6. Dodge Challenger :  I have mentioned this before and I will mention it again and again. I love Mammoth cars with mammoth engines. No wonder Dodge Challenger tops my list of dream cars. But it is also here because its the last of the species of big cars with big engines and because Camaro and Mustang are already too modern for our liking. Also because it can win us a war against the aliens. Give me one and I promise to eradicate the Richshaw infestation in India.

PS: This is the one and only car I dare buy in Furious Fuchsia pink or Plum Crazy Purple.

7. Holden Commodore: I won't repeat how I like Mammoth cars with Mammoth engines coz they look like the Dodge Challenger pictured above and Dodge Charger pictured below. But Indian families are huge and live-in relationships are taboo (I hate this world). But worry not my wedding loving friends. GM has just the right car for you. They have taken a mammoth car, put in a mammoth engine and slapped four doors on it to carry the whole family in comfort and provide you with adrenaline when you sneak out on that wild Saturday night. The car gave sleepless nights to BMW, Audi and Mercedes-Benz in the guise of Pontiac G8 in the USA. Also, with four doors slapped on, the car looks ready to maul you if you try to sneak even a little further on the start line. No cheating!!!

PS: Holden Commodore is actually manufactured in Australia.

 7.  Dodge Charger: Since Dodge Charger ties with Holden Commodore I will have to repeat how I like Mammoth cars with Mammoth engines coz they look like the Dodge Challenger and Pontiac G8 aka Holden Commodore pictured above. You don't need a beer belly, small glasses and a huge mustache to scare children anymore. Park one of these and you are safe for life. My particular favorite is the Super Bee edition complete with the yellow paint and Black stripe and a matching Hemi engine to go with it. Imagine driving a yellow car on a hot summer day in Ahmedabad...

PS: If you see a black Dodge Charger, Slow down. It's that evil cops favouraite car these days.

8. I-miev: We only have one Harvinder Singh to slap all the corrupt politicians. So nothing can stop fuel quality to drop and prices to rise. At a time like this, our only hope is this car. The Mitsubishi I-MIEV. is sexy, small, sexy, electric and sexy. Did I say it looks sexy? The car is already sold in a dozen countries worldwide to keep the purchasing costs down and save the company's Indian operations. Famous editions include the 'Hello Kitty'(no pink for me this time please) and 'i-play'(ipod special edition).

PS:The U.S. version of the 'I-MIEV' has been enlarged to accomodate the fat American youth and the name has been shortened so the company officials do not waste time trying to explain the meaning of the moniker.

9. Citroen DS3: Thanks to our leaders like Sharad Pawar, the roads in our country resemble his face. Most cars due to this reason, are high on maintainence and the ride is bumpy. Enter Citroes DS3, the car that dons French Attire, French Etiquette, French poise and French performance. Citroen has perfected it after years of experience in the rally races. A perfect car for India

PS:  The car is named DS which is French for goddess.

 10. Alfa Romeo Brera: If you think the cars pictured above were beautiful, welcome to automotive porn. Here is a car which will wet every common man's pants with desire. Alfarotica will be inducted in the Oxford Dictionary soon. Alfa Romeo's are expensive to maintain they say. Well, Luxury can never be afffordable, I say. Period...

PS: Croation Car of the year 2006, Autocar best design award 2006, European Automotive design award 2006, Best Sports/Coupe - What Diesel Car?, European Car of the Year 2007 in Japan, 'Best of the show' at Geneva Motor Show 2005, Challenge Bibendum 2002 award, "the Most Fascinating Car" award at the Super Car Rally 2002. Nuff said. Now bow down and pay respect to the goddess of Alfarotica.

Ten Awesome leaders 2011

 1. Sergio Marchionne:  born June 17, 1952, Sergio Marchionne is an international manager best known for his turnaround of the Italian automotive group Fiat and, more recently, for managing the US automotive group Chrysler from bankruptcy to profitability. He is of Italian origin but brought up in Canada. Marchionne currently holds several roles of major importance, including serving as CEO of Fiat S.P.A., Chairman and CEO of Chrysler Group LLC, and Chairman of Fiat Industrial S.P.A., and its principal subsidiary CNH. He has also served two consecutive terms as Chairman of the European Automobile Manufacturers Association. In 2009, he was instrumental in Fiat Group forming a strategic alliance with the ailing US automaker Chrysler, with the support of the US and Canadian governments and trade unions. Less than 2 years later, following its emergence from Chapter 11, Chrysler returned to profitability (Q1 2011) and repaid all government loans (May 2011).  Dodge's car and truck line are now split into two, "Dodge" for cars, minivans and crossovers and "Ram" for light and medium duty trucks and other commercial-use vehicles. Also Chrysler and Lancia cars will share the same platform since both brands do not co-exist in a single geographics location.  'Imported From Detroit' has been touted as the best advertising slogan of the year by various trade pundits.

2. Carlos Ghosn: Carlos Ghosn is a Brazilian-Lebanese-French businessman who is currently the Chairman and CEO Japan-based Nissan and holds the same positions at Paris-based Renault, which together produce more than one in 10 cars worldwide. Ghosn is also Chairman and CEO of the Renault-Nissan Alliance, the strategic partnership overseeing the two companies through a unique cross-shareholding agreement. For orchestrating one of the decade's most aggressive downsizing campaigns and spearheading the turnaround of Nissan from near bankruptcy in the late 1990s, Ghosn earned the nicknames "le cost killer" and "Mr. Fix It.". When he joined the company, Nissan had debt of $20 billion and only three of its 48 models were generating a profit -- and reversing the company's sinking fortunes was considered "mission impossible.". Ghosn promised to resign if the company did not reach profitability by the end of the year, and claimed that Nissan would have no net debt by 2005. He defied Japanese business etiquette, cut 21,000 Nissan jobs (or 14 percent of total workforce), shut the first of five domestic plants, and auctioned off prized assets such as Nissan's aerospace unit. in one year, Nissan's net profit climbed to $2.7 billion from a loss of $6.1 billion in the previous year. Twelve months into his three-year turnaround plan, Ghosn had Nissan back in the black, and within three years it was one of the industry's most profitable auto makers, with operating margins consistently above 9% -- more than twice the industry average.In May 2005, Ghosn was named president and chief executive officer of Renault. When he assumed the CEO roles at both Renault and Nissan, Ghosn became the world's first person to run two companies on the Fortune Global 500 simultaneously. He is also the only person to have a comic book published based on his life.

 3. Anand Mahindra:  Anand Mahindra is the Vice Chairman and Managing Director of one of India’s largest enterprise, Mahindra and Mahindra. Mahindra was a co-promoter of Kotak Mahindra Finance Ltd, which was converted into a bank in 2003. Under Anand Mahindra's leadership, the Mahindra Group has set global ambitions and benchmarks for success. The company has grown rapidly through both acquisitions and greenfield business development with several high-profile mergers in the past few years, including the acquisition of Satyam Computer Services in 2009, Kinetic two-wheelers in 2009, Reva Electric Vehicles in 2010, and Ssangyong Motor Company in 2010. In 2002, the company launched an indigenously developed SUV, the Scorpio, which today has gone global. 'Knight of the Order of Merit' by the President of the French Republic. After the breakup of the Mahindra-Renault Alliance, the company has rejuvenated Logan car sales from 200 per month to more than 2000 units per month in a span of 6 months.

4. Rahul bajaj: It takes a lot to build a slogan people remember even after decades. 'Hamara Bajaj' is one of them, a national treasure of sorts. Rahul Bajaj is the man behind the company that made the slogan famous, Chairman at Bajaj Auto and a member of Parliament. What many people considered taboo was considered an opportunity by Rahul Bajaj during the license raj. The burgeoning demand for scooters was satiated only enough to make sure that the scooters appreciate in value after years. If you had foreign currency, your delivery period was shortened from 10 years to a couple of years for the iconic Bajaj Chetak. While the slump of scooters demand in the days of liberalization and globalization caught the company's profits, with the help of collabration from Kawasaki, Bajaj was quick to enter the motorcycle segment. Today while Hero Moto Corp is the largest two wheeler company in India, Bajaj Auto beats them in Motorcycle market share and even the Japanese lag behind. Today Bajaj Auto makes indegenous motorcycles under the Pulsar and Discover brand names and also sells Kawasaki branded motorcycles in the premium end keep a firm grip on the market share. The advertorials have held the cultural value and are a treat to watch even today.

5. Alan Mulally: In the 2009 recession, The largest car manufacturing base in the world fell apart. Two of the three companies sheltered against bankruptcy. The third company had recorded huge losses the year before, yet survived. The company was Ford Motors. The man responsible for such a feat was none other than Alan Mulally, currently the President and Chief Executive Officer of Ford Motor Company. He began his career with Boeing as an engineer in 1969 and was largely credited with BCA's resurgence against Airbus in the mid-2000s. One of Mulally's first decisions at Ford was to bring back the Taurus Nameplate. He said that he could not understand why the company previously scrapped the Taurus, which had been one of the company's best sellers until losing ground in the late 1990s. Mulally took over "The Way Forward" restructuring plan at Ford to turn-around its massive losses and declining market share. In 2008, amid mounting losses during an economic downturn, Ford announced a proposal on December 2, 2008 to cut Mulally's salary to $1 per year if government loans were received and used by Ford. During hearings for government loans to Ford, he and other industry leaders were criticized for flying to Washington, D.C. in corporate jets. During a subsequent meeting, he traveled from Detroit to Washington by a Ford-built hybrid electric vehicle, while selling all but one of the company's corporate jets. He is also largely credited for achieving a wage rate of $55/hour compared to $76/hour with the UAW (Union of Auto Workers).

6. Martin Winkerkorn: Think Audi, think Volkswagen, think Skoda, think Porsche Automobili, think Lamborghini, think Bentley and Buggati. The thinktank behind this company is Martin Winkerkorn. In 1993 Winterkorn became head of "Group Quality Assurance" at Volkswagen AG, and was appointed General Manager of Volkswagen AG with power of attorney in March 1994. The rest is history. The man responsible for VW group's prominance in the market today. Volkswagen rose to being the thirst largest carmaker taking advantage of the 2008 United States recession which affected big car makers including GM, Chrysler, Ford, Toyota and Honda. VW went on a market expansion spree also signing a controlling agreement with Suzuki especially for the Indian operations and buying Italdesign Guigiaro studios.

7. Chung Moon Koo: At a time when The Germans and Americans were controlling the market and the Japanese were on an offensive, A Korean car maker decided to stand amongst them. Today Hyundai stands as the fifth largest car maker in the world. Chung Mong Koo is much credited with improving the reputation, perception and sales of Hyundai vehicles by shifting the automaker's emphasis from production to quality. Togather with Kia Hyundai has cars are now more known for their quality than their quirky Korean designs. Being one of the latest entrants in the automobile industry, Chung Moon Koo has definitely made the cut taking the company to great heights globally.

8. Roberto Colaninno: Roberto Colaninno is the name that took Piaggio to become the worlds fourth largest two wheeler company. Piaggio's financial position was in a bad shape, but its brand was still well known and its products were featured in many Hollywood films thanks to the Vespa ET4. In 1995, Colaninno had pulled off Europe's then largest-ever hostile takeover when he took control of Telecom Italia SpA. In October 2003, Colaninno made an initial investment of 100 million euros through his holding company Immsi SpA in exchange for just under a third of Piaggio and the mandate to run it. Chief executive Rocco Sabelli redesigned the factory on Japanese principles, and changed it so that every Piaggio scooter could be made on any assembly line.Unlike the turnaround recipe applied at U.S. auto makers, Mr. Colaninno did not fire a single worker. Today Piaggio holds Aprilia, Derby, Laverda(defuct), Gilera, Moto Guzzi and Vespa brands.

9. Brij Mohan Lal Munjal: Brij Mohan Lal Munjal created the worlds largest two wheeler company in Hero Motors. Honda was regarded worldwide as the best automobile maker in the two wheeler market strongly based on the ruggedness in which Hero Motors products are used. The credit goes to Brij Mohan Lal Munjal. Today after the breakup with Honda, the company is still going strong on sales developing new products.

10. Venu Srinivasan: Venu Srinivasan is the Chairman and Managing Director of TVS Motors, and also the Managing Director of Sundaram Clayton Ltd. He has also served as the President of Confederation of Indian Industry (CII) for the year 2009-10. In 1990, when TVS Motors' joint venture partner Suzuki refused to bail the company out after a ravaging strike, Srinivasan decided to deal strictly with the labor unions. He shut the factory down for three months, and forced the unions to relent. Then he overhauled the company operations by upgrading the plant, investing in new technology and implementing quality programs.TVS Motors split with Suzuki in 2001, and started manufacturing on its own. Today TVS is the most famous name on the Indian racing scene and the company is the third largest in market share behind Hero moto Corp and Bajaj Auto.

Ten things Tata should do to turn into a global manufacturer

Tata has long been a major player defining the Indian car market. Currently the second largest car maker including trucks, TATA has worked hard to make the Middle class Indian mobile with the Nano and the Indica. But more than two decades of experience has not helped TATA reach the mantle of a global carmaker apart from the Jaguar Land Rover acquisition. Here are some important changes the company needs to focus on to appeal to a wider audience.

1.  Better Engine Platform Utilization: Over the years Tata has developed a lot of engines in both Petrol and Diesel configuration. To add to the range for competing better in the market Tata has also sought Fiat's help (Fiat India is a 50:50 venture) for holding a wider range of engines and gearboxes.  Including Jaguar, Land Rover and Fiat acquisition Tata at the moment has

Tata Indica/Indigo/XL/Marina Platform
Tata Vista/Manza platform
Tata Nano/Pixel/MagicIris/ Ace Platform
Tata Safari/ Aria/ Grande/ Xenon platform
Tata Sumo/TL platform
Tata Winger platform ( based on Renault Trafic design)
Tata Venture platform
Jaguar XJ
Jaguar XF (Ford platform)
Jaguar XK
Land Rover Defender
Land Rover FreeLander (Ford Platform)
Land Rover Discovery/ Sport platform
Land Rover Evoque paltform
Range Rover Platform
Fiat Linea/ Grande Punto Platform
Fiat Palio Stile platform
Fiat 500 platform

In Total Tata has 18 platforms in its kitty to maintain including the luxury brands and the fiat venture. While major car makers today are cutting down on platforms to increase the margin, Tata has an huge number of platforms at its hand. The company needs to reduce the platforms for a better capacity utilization and economies of scale. Also more car designs such as a coupe and convertible are needed too.

The current generation Sumo/ Spacio has been outdated and is being outsold by competition. Just like VW uses the same platform for VW, Skoda and AUDI vehicles Tata can utilize Land Rover platforms for its Utility vehicles including the Safari, Grande, Aria and other vehicles. The upside for Land Rover will be the economies of scale helping profitability and increased margins while helping Tata minimize the build quality issues, uneven panels and ergonomics and low brand image.  The defender platform is apt for Tata Sumo, Spacio, venture and winger models. The Freelander will make a nice platform for Xenon pickup and Grande. Finally the Safari and Aria can be based on the Discovery Platform. This will help the company erase its biggest weakness which is the public perception. Here the point is not to kill the platform the merge two platforms for a more economic and competitive single platform.

A similar exercise needs to be undertaken by TaTa by where the Vista/ Manza platform needs to be slowly outsourced on the Fiat Linea/ Punto platform . Fiat is having a hard time making sales targets. Sharing more than engine and gearbox will help both the companies just like the Land Rover Tata situation where economies of scale help in profit margins. Tata already has a lot of engines too.

4.4 Diesel V8 (Land Rover)
3.0 Diesel V6 (jaguar/ Land Rover)
3.0 Disel (Sumo, Safari)
2.7 Diesel V6 (Jaguar/ Land Rover)
2.2 Diesel (Land Rover)
2.2 Diesel (Grande, Aria, Safari, Xenon)

2.0 Diesel (winger, Sumo, Safari, TL)
1.4 Diesel Dicor (Venture, Indica, Vista,Marina, Indigo, XL, venture, )
1.3 Multijet (Vista, Manza, Fiat cars)
.6diesel (Iris, nano, Pixel)



.6 petrol (Nano, pixel, Iris))
1.2 petrol (Indica)
1.2 Petrol (Fiat Cars)
1.4 Petrol (Indica, Marina, Indigo, XL)
1.4 petrol (Vista, Manza, Fiat cars)
2.0 Petrol (Land Rover)

2.1 petrol (safari)
3.2 Petrol I6 (Land Rover)
3.5 petrol (Silhoutte)
4.2 Petrol V8 (Jaguar)
5.0 Petrol V8 (Jaguar/ Land Rover)


2. A stronger and sharper brand image: Tata is looked at more like a utilatarian car maker. More individual buyer marketing for Xenon and TL (Thar and Gateway for example)is necessary. The products do not show on the Tata Motors website. Grande MKII also needs to be provided with more features and a better image so that it can fight with Scorpio while the new Safari Merlin replacement can take the fight to the new Scorpios premium car. This will also aid in pulling Aria at a higher price segment. Pulling Grande MKII up the price ladder will also create a space for pitting Winger platinum againast Innova and Xylo and Tavera.

3. An easy to use website: Internet has fast caught on as a medium which provides immense information for car buyers. Tata Motors will not generate any business with a better website but it sure helps in providing a lot of information. Loads of models are not provided and information is scarce too. It also helps to include Merchandise (watches, sunglasses and pen, Mobile phone) to be retailed on the website. The merchandise products can be Tata brands itself such as Titan watches, Fastrack sunglasses etc.

4. Choice of alternative fuels: With the corruption catching up in petrol companies in India, prices have risen explicitly even though quality is still lacking. In such a scenario, buyers are fast looking at the alternatives. Diesel is one field where Tata Motors has a strong presence. But the company needs to catch up with CNG LPG options fast. Brands like Maruti and Chevrolet have provided their complete line ups with CNG and LPG options to cater to the increasing demand for non petrol vehicles.

 Also Mahinra and other international care makers are betting high on electricity as the alternative source. Tata needs to prepare for the onslaught. For those who are not aware Tata Motors has put in enormous R&D for oneCAT and has also succesfully prepared electric Indica and Ace models in the past. Tata has also bought Miljøbil Grenland/Innovasjon which is an alternative energy company for the same. But any updates are yet to be made public by the company. Succesfuly prototypes of Tata Vista and Nano have also be caught on test grounds.

But the most important addition would be of a 650cc two cylinder or a 975cc three cylinder diesel motor for use in Tata Nano and Tata Indica. Chevrolet has succesfully pulled this feat off in the latest Chevrolet Beat Diesel.

 5. Automatic Transmission: Fact: No Indian Hatchback on sale today has a diesel automatic option. Mahindra was quick to develop an Automatic option for its Scorpio diesel. Maruti  and Hyundai have been offering automatic transmission in their A-Star and I-10 hatchbacks. This makes Tata only car maker in the top five domestic car makers to not have an automatic transmission. With increasingly congested traffic situations an Automatic Manza against Honda City/ Verna/ Vento/ Fiesta will help bring customers to the Tata showroom and sell more cars.Not to forget that an Automatic Tata Vista will be the only car in the market in the diesel segment. While Jaguar Land Rover cars have automatic transmissions, Tata can also source automatic transmission from Fiat just like they sourced the manual transmission for Tata Vista.

6. Tata Customization programme: With increasing awareness and competition in the market, carmakers offer more and more models to cater to a wider audience. While custom car packaging has caught on outside the country, this concept is yet to make it mainstream in India. Mahindra for starters has begun providing customer with such custom vehicles. Volkswagen also provided a similar custom programme for its Polo hatchback on launch. I remember how on my purchase HM-Mitsubishi had offered me to provide wth a car in my colour with my choice of upgrades in three weeks. The same confusion was taken care of by the dealer when I wanted my Basic Honda Jazz to be kitted with aluminum wheels over steel wheels. I still missed out on the USB port for the audio. In addition engine upgrade options should also be provided. Tata Motors has a common engine platform for most cars. Selling engine upgrade spares via dealerships will provide Tata with a better brand image through spare availability and let users decide what engine configuration they are interested in. A 1.4 Tata Indica with DOHC head from the XL family can take the fight to Polo and Fabia in the 100bhp hot hatch game.

7. Technology upgrade- Tata cars while growing leaps and bounds in quality still leave a lot to be desired in features across the range. Most car makers today have provided ABS, EBD and Airbags across the range. In comparison Tata has these features only in Safari, Aria, Manza and Vista.Those who have demoed the 'My tata connect technology' will also agree that buyers will be willing to pay for 40K premium even in the most basic of cars like the Tata Nano. Connectivity is the buzz word in the markets today and even a fledgling car maker like Saab (just entered bankruptcy) has shifted to Android UI for its cars. Connectivity and communications integration in cars will lead to much efficient transition when the electric car wave hits the market in the near future.

8. Efficient capacity utilization: Tata motors has found it tough to increase the sales compared to market leaders Maruti and Hyundai. This has also led to plant efficiency falling to below 70%. Tata motors is already exporting to Brazil, Argentina, South Africa, South Korea, Thailand, Spain, Italy, Poland, Turkey and the United Kingdom but its major presence is still found on the Indian subcontinent namely India, Bangladesh, Bhutan, Sri Lanka and Nepal. It is an excellent opportunity to dump the slow moving stock in the international markets for competitive prices joinyl with some strong marketing and promotions. This will lead to Tata building a strong customer base worldwide and keep the plant efficiency above 80-90%.

9. Enter Rally Racing: At a time when Bajaj was selling Pulsar unchecked by competition TVS brought its Apache face to face and has changed the game. Customers are now buying TVS  motors Apache motorcycle as much as the Pulsar. This was made possible by TVS motors racing team which followed the motto 'race on Sunday, sell on Monday.' This is not the first time a car maker has taken to this slogan. Nissan, Ford, BMW, GM, Chrysler, Mitsubishi, Mazda, Subaru and many other car makers have followed the practice in history. It is a known fact that while not every customer buys a car to race, racing pumps adrenaline into everybody's minds. Hence racier looking cars always catch more fancy. A successful sales strategy by HM with the Lancer in the late 1990's had given the company so much leverage, it was one of the best selling cars. Tata need not go outside their stables for more success stories of racing and car selling. When Tata introduced the Tata Silhoutte sports car based on the Indica platform, enthusiasts all around the country thronged discussion forums to know more about it and buy if it was in their reach. Tata needs a strong presence in the INRC and other national rally championships where it stands a better chance to survive considering the cheaper spares and maintainence and stronger build.

10. Annual design refresh: The first Tata Indica appeared in the market on 1998. Indica V2, Vista and Vista V2 have followed in what has been the lifespan of 13 years. In comparison Suzuki's Alto (800/Alto/A-star) has seen more than 20 refreshes in 20 years. Ford's Fiesta has seen 10 refreshes in close to 7 years and Honda Civic has seen 4 refreshes in five years. With the sales spurts Tata has witnessed along with launching a refresh, it is quite evident that such tatics help the company keep the car abreast with competition even though it may only include an upholstry change, grille redesign and headlight changes. To make some buzz or the other in the market has become the necessity since the market is now crowded with more than 25 manufacturers.

HM launches a new vehicle part-II

Continued from http://boyracer.blogspot.com/2011/08/hm-launches-new-vehicle.html

A recent article has caught my eye recently and I will be putting it down here. The reason why this article is important is because the author has taken the pains to provide some correct information which is not readily available.

The car with a made-in-Calcutta tag is going retro to stay relevant in the age of sleeker, stronger and speedier.

A team of 30 engineers is racing against time at Hindustan Motors’s new R&D centre in Uttarpara to rebuild the Ambassador into a city slicker with fashionably retro styling and a peppier engine under the bonnet.

Already late by a year, the retro Ambassador will finally hit the road in its hatchback and sedan versions next August. “We are going to relaunch the Ambassador on a new platform, and with a lot of technical changes, in the second quarter of 2012,” Prakash Jha, the managing director of Hindustan Motors, confirmed to Metro.

The Amby revamp project had been outsourced to the Pune-based Onio Design Pvt Ltd, which did the initial design and research for the retro car. “We have since taken over the project and have been working on it since last February,” said Sandhya Pande, head, Vehicle Strategies & Development. 

The new Ambassador will retain the monocoque platform that gave the vehicle its roominess. “We will also maintain its heritage look and iconic features,” Pande said. 

What will change are the engine, transmission and suspension sytems. The Ambassador will have a peppier engine of 1.5 litres and 1.8 litres respectively for the hatchback and sedan. While the company is due to launch a BS IV-compliant petrol engine for the current Ambassador by the end of this fiscal, the new Ambassador will have a CrDi engine (diesel motor) that is being sourced from Europe. 

The hatchback, the prototype of which is ready for tests, will be less than four metres in length to make it eligible for excise cuts. It is likely to be priced between Rs 3.5 and Rs 4 lakh, a company spokesman said. 

The entry-level sedan will offer C-segment luxury features like leather seats, a new retro-looking dashboard, Bluetooth and other gizmos. Safety features like ABS (anti-lock braking system) and EBD (electronic brake distribution) will be optional. Coming to the other car based on the new Ambassador, the retro Ambassador sedan will compete with the current crop of C-segment sedans with the 1.5 Liter CRDI diesel engine and the 1.8 Liter BS4 petrol engines powering it. While the common rail turbo diesel engine is being developed from scratch, we hope that the 1.8 Liter Isuzu petrol unit gets more than just a BS4 certification compliance, as it isn’t exactly known for its frugalness, one factor which is the need of the hour in India. The C-Segment Ambassador sedan will have a host of new features like ABS, EBD and leather seats to add to the luxury quotient.

“The Ambassador is known for its product life cycle, safety and robustness. When the state government was phasing out commercial vehicles 15 years and older, we had 20-year-old taxis on the road. Tell me, which vehicle has such a long running life?” demanded managing director Jha.

The current model of the Ambassador is based on the 1950s Morris Oxford III. The UK-based Morris Motor Company, of course, discontinued the model about 50 years ago. 

Hindustan Motors has often been accused of being reluctant to adapt to newer technologies. Automobile designer Dilip Chhabria, who created the Rs 4.4-crore Amberoid that was inspired by the Ambassador, said: “It is an uphill task for the company (to revive the Amby). Apart from some very timid efforts, they haven’t done anything to it for decades. Being an icon is what has powered Amby sales since 1950s. I believe the company should treat it the way Porsche has treated the 911 and BMW has treated the Mini.” 

The Ambassador sold 8800 units in 2009-10, but and the figure dwindled to 6,700 units in 2010-11. The retro Amby is, therefore, Hindustan Motors’s last-ditch effort to revive this iconic passenger car that ruled the roads through the sixties and seventies till the Maruti 800 changed the way people drove in India.

http://www.telegraphindia.com/1110811/jsp/calcutta/story_14357767.jsp
By- Anasuya Basu

HM Launches a new vehicle

HM has just lauched the Veer. It reminds me of HP Veer. Apart from the sealed fate both do not have much in common.

HM has recently reported to BIFR as reported by me here. http://boyracer.blogspot.com/2010/05/hindustan-motors-reports-to-bifr-as.html Since then, the Managing Director resigned and company got in Mr. Manoj Jha as replacement.

The rein holder definitely wanted to make some noise and HM announced an Ambassador Redesign. Rumours were spread that HM was getting help from Studios in Italy. Fact was HM only visited a domestic company named 'Onio' designs.

After months of wait for HM supporters HM has finally launched the HM Veer. The sad part is Veer looks nothing more than a redesigned Hindustan Porter

It shouldn't be much of surprise how HM is moving towards commercial vehicles segment with the launch of HM Veer and Shifeng sourced Winner. But The sad part is the ill developed product. Mahindra and Tata both have succesfully capture the single cab pickup and double cab pickup markets with vehicles like the Tata Xenon, Tata TL4x4, Mahinra Getaway and Mahindra Camper. These vehicles also had a limited niche market appeal. Sadly, HM Veer falls in the no mans land.

With a focus on the commercial vehicle segment, ailing auto maker Hindustan Motors (HM) is expecting a revival of fortune in another three years' time, a top company official said on Monday. The vehicle priced at 3.3 lakh (ex showroom Kolkata) is built on the Ambassador platform of the company's Uttarpara facility in West Bengal.“We have honoured our commitment by launching Veer. Four new vehicles will also be launched this year. These will come both from our Uttarpara and Chennai plants,” he said.

It was speculated that HM might launch a sub 4 metre sedan/hatch aka the Verito or Indigo CS. But Hindustan Motors has instead decided to go for a commercial passenger segment with the next product being a 7-9 seater Van again based on the Ambassador.

The company sold 10000 units of the Ambassador last fiscal and with the launch of the variant of the same platform it is hoping to sell 50000 units. Sadly, for enthusiasts, the company does not have plans to relaunch the Contessa or upgrade the Ambassador platform to compete in the retail customer segment. Neither is there a cash strapped plan to build a seventh generation lancer derived Hatchback to compete with the Toyota Etios/Liva and Mahindra Verito. The company has also lacked the vision to study how Lincoln Town car and Austin LT cabs kept the companies alive while they built on their brands using newer platforms.

 Priced at 330000 INR, the vehicle retains the same engines used on the Ambassador.