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|19th May 2007, 01:16||#16|
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It won't be a good move for either Tata or M&M to pick up Chrysler. Primary problem is that when catering to advanced markets like the US you need to have a HUGE budget for developing new products & not to mention a world-class R&D team too. You need to freshen & replace your products very frequently by Indian standards & both these companies are severely lacking in that department. Not to mention the need for latest technology & gadgets in the products in order to succeed in these highly developed markets.
Also for a second consider the fact that if Daimler Benz with their huge financial muscle & world-class R&D team could not turn around Chrysler, do our companies really stand a chance? Do they have deep enough pockets? And more importantly will they be allowed to buy an American company by the American Govt. & the American public? Don't forget the hurdles Lakshmi Mittal faced while trying to acquire Arcelor.
I'm not saying it's impossible but it's a very tough task for small Indian companies to attempt. Chances for failure are much higher than chances of success & a turnaround.
|19th May 2007, 05:33||#18|
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I really doubt that's going to happen.
OT: Has anyone considered why Tata didn't get into a partnership for its small cars? Like Hyundai and Daewoo both did for their Santro/Atos and Tico/Matiz. Would have helped tremendously.
|19th May 2007, 09:17||#19|
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tata already is in final stages of its small-car project. Then it has Indica as well, and who knows Indica V3 might come with a Fiat engine, thus solving Tata's QC problem.
Cerberus intends to chop down and restructure Chrysler before selling it to a prospective buyer. It's workforce and other staff is going to be mercilessly chopped down to bare minimum leaving only a R&D team and few others.
And hasn't Tata have old relations with Daimler/Mercedes.
Chrysler is an expert in making good bodies but very poor at making internals like engines until it came into association with Daimler. Tata will thus get access to Chrysler designs and Fiat, Daimler engines.
Priority for Tata-Chrysler may be the Asian market and not the North American one.
Last edited by lurker : 19th May 2007 at 09:19.
|20th May 2007, 00:57||#20|
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Last edited by ajmat : 20th May 2007 at 08:10.
|20th May 2007, 08:13||#21|
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Issue is what do you want from the acquisition
Tata wanted Corus's markets and some other capabilities that it lacked
Chery wanted the MG brand name, a proper car design it could call it's own and the production plant
Mittal never looked at Corus as it did not add value to him
All Daimler wanted was to be big. The lack of diligence gave them indigestion. Similar thing happened to BMW/Rover except it was easier fo them to get out.
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