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Old 17th March 2016, 17:52   #31
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Default Re: Expat CEOs: Why are car manufacturers in India obsessed with them?

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Originally Posted by Jeroen View Post
No, it is both. Getting attention from HO when you have size of your market behind you is relatively easier. But especially if you donít have the size it takes a lot of effort. Being able to get a large organisation to support you, help out, adjust itself is a major skill set / competence
Certainly great to have both skill sets but in reality you wouldn't get Group HO support beyond a point if size is small. And it wouldn't be fair for that to be a reflection on your competence either.

The lack of Group HO support is a primary reason for the poor service and lack of responsiveness in German automotive manufacturers.

As this scenario is across the board, it's evident that none of them have got the required support. And if they aren't competent they wouldn't have made it to the CEO position either.
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Old 17th March 2016, 19:11   #32
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Default Re: Expat CEOs: Why are car manufacturers in India obsessed with them?

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Certainly great to have both skill sets but in reality you wouldn't get Group HO support beyond a point if size is small. And it wouldn't be fair for that to be a reflection on your competence either.

The lack of Group HO support is a primary reason for the poor service and lack of responsiveness in German automotive manufacturers.

As this scenario is across the board, it's evident that none of them have got the required support. And if they aren't competent they wouldn't have made it to the CEO position either.
I think we have a different understanding and or experience how corporates work and what it takes to become a Group CEO or local CEO. Thatís ok, are you a corporate executive?

Jeroen
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Old 17th March 2016, 19:51   #33
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Default Re: Expat CEOs: Why are car manufacturers in India obsessed with them?

In a related news Maruti Suzuki on Thursday extended the tenure of its Managing Director and CEO Kenichi Ayukawa by another three years.

The board of directors of the company approved the re-appointment of Ayukawa as Managing Director and CEO for a period of three years with effect from April 1, 2016, Maruti Suzuki India said in a BSE filing.

Similarly, the board also approved re-appointment of Toshiaki Hasuike as Joint Managing Director for a period of three years with effect from April 27, 2016, it added.

Source: ET
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Old 17th March 2016, 23:32   #34
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Default Re: Expat CEOs: Why are car manufacturers in India obsessed with them?

An outsider look and an insider hand is what was lacking at Tata motors . And the new guy at the helm seems to have nice plans!

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Old 18th March 2016, 00:03   #35
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Default Re: Expat CEOs: Why are car manufacturers in India obsessed with them?

Why IT co's are getting some Indian CEOs? (well, a tiny %age). This is an analogy.
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Old 18th March 2016, 06:47   #36
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Why IT co's are getting some Indian CEOs? (well, a tiny %age). This is an analogy.

Well, in line with the thinking of some of us that the reason we dont see many Indian (local) CEO in automative because its a relative new industry and therefor still lacks experienced talent, the opposite is probably true for the IT Industry which has been a well established industry in India for several decades, so lots of experienced talent around.

Along those lines, some of our customers are often asking for non Indian counterparts in SME as well Managerial Functions. Simply to do with some of the technology we are introducing and they know that there is just little local experience with certain new technologies. The opposite is true as well. Some of non Indian customers want to see Indian when we are discussing outsourcing and managed services. India is by far our most experienced and largest market in this area, so we have lots of very experienced talent.

By the way its not just management that roams the world. In fact the number of specific specialist is by far more. We have thousands of people in specialized roles that roam around the world.

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Old 18th March 2016, 20:27   #37
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Default Re: Expat CEOs: Why are car manufacturers in India obsessed with them?

Being in the industry for almost 6 years now - and having worked in an Indian OEM and currently in a foreign OEM - My view is -

Other MNC's which were mentioned by GTO- are already leading players elsewhere and see a ocean of opportunities in India - and hence they need a CEO ( my view of a job of CEO is that she/he - Approve or rejects key strategy decisions!) - who is Indian- understands the market and also gives a "show" to all stakeholders about how serious they are in Indian Operations!

Come to Auto Industry - Indian Industry is no more local and has started going global long time back! - And so, they would want people and faces who would promote this strategy - By placing people who understand global dynamics- And like many BHP'ias mentioned - There is hardly any home-grown talent in automotive that is so experienced ( like the SW MNC's) - There is still time!
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Old 19th March 2016, 00:00   #38
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Default Re: Expat CEOs: Why are car manufacturers in India obsessed with them?

GŁnter Butschek sounds like a very good choice as Tata Motors CEO (and as replacement for the late Karl Slym) to continue the work of transforming Tata Motors, especially the company's passenger vehicles business.

In his first interaction with the media, in addition to all the talk about transformation and vision, he did mention certain areas that deserve serious attention. It's good that he has identified problematic areas that need to be sorted out as soon as possible.

Quote:
Butschek added that there is room for improvement in the quality of the manufacturing and the company is also looking at reducing the number of suppliers.

"We will certainly reduce the number of suppliers...I would rather focus my energy and resources on development of my strategic supply partners instead of wasting awful lot of efforts into ones who would always remain sub-standard," he said.

He said focussing on producing more models from a single platform and quicker turnarounds in launching new models to address the opportunities will also be a focus area.


Source

Tata Motors has no choice but to continue on the path of quality improvement that was initiated by Karl Slym.

I guess the new CEO's efforts to transform Tata Motors may face some kind of resistance from certain quarters within the company (and external ones as well). He needs the full support of Cyrus Mistry & the board and top executives in the company to continue on the path of change and take the organisation forward.

If they don't do it now, then it may turn out to be too late!

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The board of directors of the company approved the re-appointment of Ayukawa as Managing Director and CEO for a period of three years with effect from April 1, 2016, Maruti Suzuki India said in a BSE filing.

Similarly, the board also approved re-appointment of Toshiaki Hasuike as Joint Managing Director for a period of three years with effect from April 27, 2016, it added.
Good decision!

Both the gentlemen mentioned above have worked very hard to take Maruti Suzuki from strength to strength. It's only fair that they get rewarded with an extension in Suzuki's most important market. Going forward, they will only strengthen Maruti Suzuki's formidable position.

Last edited by RSR : 19th March 2016 at 00:12.
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Old 19th March 2016, 08:55   #39
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Default Re: Expat CEOs: Why are car manufacturers in India obsessed with them?

The automotive industry is unique. The skills to head a group are quite varied. For example, a typical automotive CEO should have had a minimum experience in the following fields:

+ Strategy and strategic initiatives
+ New Technology (Research & Development)
+ Design (Design and Development)
+ Manufacturing and Operations (including IT aspects)
+ Purchase, Sourcing and Logistics
+ Program/Project Management, etc ...

These are a few fields where the CEO is expected to have had experience in.

Unfortunately, very few Indian MD hopefuls seem to have such a varied exposure. The expats seem to have had experience in all the above and more. Things are changing for sure though. Seeing quite a few Indian CEOs stepping up to the play and making their mark felt around the world, Dr. Pawan Goenka from Mahindra comes to mind (granted, he is an ex-General Motors man).
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Old 20th March 2016, 17:22   #40
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Thanks GTO for a well compiled list...

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Originally Posted by GTO View Post
And it's not a question of MNCs either - Microsoft India, Citi Group, Nestle, P&G, Apple etc. are all led by Indian CEOs.
Not just Microsof India, The global leaders of Microsoft (Satya Nadella), Google (Sunder Pichai) and Noika (Rajeev Suri) are also people from Indian origin. Satya Nadella and Rajeev Suri got their BE degrees from Manipal Institute of Technology (Near Udupi, Karnataka). So I think its not about the talent or education. India has both in abundance.

Coming to the expat CEOs of Indian/India based companies I find no logic behind this other than may be a fashion statement. Just like we Indians want to own (and show off) those 'foreign made' cars, may be our car makers want to have an expat CEO?

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I knew one such person who quit a top german manufacturer- says being Indian you never make it to the top here, its a cultural thing
I am sure things will change for the good my friend. They need share in Indian market for their cars and not an Indian CEO?. Jaguar and Land Rover is now 'owned' by a company which originated in India. So I really believe that the way they look at us will change. We are not a country of snake charmers any more.

Last edited by aah78 : 24th March 2016 at 22:27. Reason: Posts merged.
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Old 30th March 2016, 02:26   #41
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Default Re: Expat CEOs: Why are car manufacturers in India obsessed with them?

On the other hand Indian Origin CEO is are hired for Shanghai-based electric vehicle startup, NextEv.
So maybe for the next revolution in automobile industry with technology and electrification as base factors we may see Indian CEO's at the helm!

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Old 20th June 2017, 13:11   #42
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Default Re: Expat CEOs: Why are car manufacturers in India obsessed with them?

VW India just got Steffen Knapp to head their car business. I'm sure he is very smart & talented, but again, these are such challenging times for VW India. Is bringing onboard a person with zero Indian experience sensible?

Deep knowledge & understanding of the local market is critical for CEOs of Indian companies. After all, India is a 'country of many countries'.
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Old 20th June 2017, 13:50   #43
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Default Re: Expat CEOs: Why are car manufacturers in India obsessed with them?

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VW India just got Steffen Knapp to head their car business. I'm sure he is very smart & talented, but again, these are such challenging times for VW India. Is bringing onboard a person with zero Indian experience sensible?

Deep knowledge & understanding of the local market is critical for CEOs of Indian companies. After all, India is a 'country of many countries'.
If he is smart enough to hire a smart bunch of second line local folks, may be
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