History of Tata Motors

Tata Motors the so called India’s largest automotive company is part of an influential TATA group. Established in 1945 the company had flourished in India during the years of the command and control industrial policy regime, popularly known as License Raj ( http://en.wikipedia.org/wiki/Licence_Raj ) where it enjoyed a complete monopoly and was shielded from Global Economy and Competition until late recently when the Indian economy was liberalized.

Tata Group by virtue of their proximity to the ruling regimes in India, became one of the largest business conglomerates they spread their tentacles across all sectors of Indian Economy, they have 98 group companies doing business in sectors like information systems and communications; engineering; materials; services; energy; consumer products; and chemicals. Prominent among them include Tata Consultancy Services (TCS), A company that exploits the cheap labor in India and thrives primarily on the outsourced white collar jobs from America.

Tata Motors or TELCO as it is formerly known as began their commercial vehicles manufacturing with the help of technology borrowed from Daimler Benz of Germany. TATA broke the tie up in 1969 and started their own design and development. Their product range covers passenger cars, multi-utility vehicles and light, medium and heavy commercial vehicles. During companies prime time, seven out of 10 medium and heavy commercial vehicles in India bear the Tata mark as they enjoyed a virtual monopoly in a tightly regulated market. However due to Stricter pollution rules, Liberalization of Indian economy and competition from companies like Suzuki their market share across all segments has drastically dropped.

TATA’s Indica Launch

To compete with global competitors Tata Motors launched their so called India's first indigenously designed and manufactured car in 1998. Contrary to popular belief, the car was not designed in India. The outer body styling was done by an Italian design house called IDEA Institute, under contract from Tata Motors. Though the company created a record by received nearly 115,000 bookings in the 1 week, The car that was inadequately tested for quality went through a near-death experience with more than 50,000 customers cancelling their orders immediately thereafter due to teething quality problems before it was revived around 1999-2001.

Indica’s global debut as CityRover

In 2003 the TATA’s Indica was launched in Britain in tie up with MG Rover, The car dubbed as CityRover was a quick and inexpensive way to access the city car market. However MG Rover's great hopes on Tata’s CityRover were dashed on the rocks by buyer apathy.

The company refused to provide a test car to the BBC's Top Gear programme, so presenter James May went to a showroom in disguise (with a camera hidden on his tie) and took a CityRover for a test drive. He later stated it was "the Worst Car he had ever driven on Top Gear," with "a ride that is harsh yet bouncy at the same time" and "a quick but needlessly loud engine".

In the summer of 2004, just one year after the CityRover's launch, MG Rover announced to replace it with an all-new model.

TATA’s Ultra Cheap Car

In the name of designing a peoples car (for buyers who might otherwise be able to afford only a motorcycle). Tata motors is panning to launch an Ultra Cheap car for less than $2500. The car would be stripped down to bare bones, Don’t be surprised if it has pedals inside. Environment groups are already up in arms that the attractive price tag could bring the car within the reach of millions of ordinary Indians, triggering more pollution and burdening the country's crumbling infrastructure.

Poor Farmers pay for Ultra Cheap Car

If the price of the car is to be kept low, so should be the companies costs, In its greed to make the car cheaper Tata Motors in connivance with West Bengal Government selected a densely populated agricultural land of Singur (Near Calcutta) for setting up their highly inefficient land-guzzling car factory. 997 acres of land was grabbed from several poor farmers at prices much below the market value, which led to several suicides and protests by thousands of farmers who resist that the acquisition will seal their only source of livelihood and render them homeless.

http://publications.aidindia.org/content/view/477/62/

http://aidindia.org/main/content/view/347/74/

http://publications.aidindia.org/content/view/458/56/

http://singur-singur.blogspot.com/

TATA Motors bid for Jaguar & Rover

Tata Motors appears to be the front-runner in the race to buy Ford Motor's Jaguar, as well as Land Rover, The deal expected to be worth about $2 billion. A decision about a winning bidder could be made over the next few days. If TATA’s were to win the bid for iconic Luxury Brands from Ford, that would be Historic, as it will be the first time that a major Western car group falling into the hands of an Ultra Cheap Automobile manufacturer.

UK government hope’s for more units for car components & boost in employment there would dashed, if TATA decides to outsource the components from its ultra cheap Singur car plant in India. TATA Motors may try to leverage on common components or platform from the $120,000 Jaguar and Rover to its sub $2,500 peoples car. The Jaguar XK-R, may soon get re-branded as XK-Vindaloo!

Good Luck Dealers & Unions

While the U.S. dealers of the two luxury marques can start training their salesmen ahead of time to target the brands to mass market segment, Friendly neighborhood mechanics & garages can gear up for more work as they would be more frequented by Jaguars and Rovers, thanks to TATA history towards indifference on Quality, However it might help generating more repair jobs.

It is a good sign for the for a minimum waged worker that he can now aspire for an ultra luxury brand that was once meant for the rich, It could be possible that TATAS might have thought about Jaguar acquisition before they announced about their planned launch of an Ultra Cheap Peoples Car!!!.

Ford Motor’s British union endorsed TATA Group’s bid to buy the Jaguar and Land Rover units. If the British-based units are sold, it should to be to a company “with an established presence and background in manufacturing,” the union said.

Pity for the 13,000 workers of these units, for they know too little about the history of TATA’s employee exploitation. This is the same company which brought thousands of Indentured servants from India to work on Hi Tech IT jobs in US and paid them paltry salaries, undermining US Prevailing wage rate laws, Without leave or over time benefits, they even stripped them of their Federal Tax Refund Checks.

http://www.lieffcabraser.com/lawsuitagainsttata.htm

http://www.ailf.org/pubed/n022100a.htm

Conclusion

It is high time that the dealers and unions woke up from their hibernation and say No to the deal if the image of the Luxury brands is to be protected.