Go Back   Team-BHP > BHP Worldwide > The International Automotive Scene


Reply
 
Thread Tools Search this Thread
Old 19th May 2007, 01:16   #16
Senior - BHPian
 
iraghava's Avatar
 
Join Date: Oct 2005
Location: Bhaiyyaland
Posts: 8,028
Thanked: 153 Times
Default

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.
iraghava is offline   Reply With Quote
Old 19th May 2007, 01:28   #17
Senior - BHPian
 
Join Date: Mar 2005
Location: N.A
Posts: 6,834
Thanked: 1,503 Times
Default

A PURELY Speculative commentary on the deal:

Wither Chrysler?
Steeroid is offline   Reply With Quote
Old 19th May 2007, 05:33   #18
Senior - BHPian
 
v1p3r's Avatar
 
Join Date: Feb 2005
Location: BLR - chasing cars...
Posts: 4,836
Thanked: 26 Times
Default

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.
v1p3r is offline   Reply With Quote
Old 19th May 2007, 09:17   #19
Senior - BHPian
 
lurker's Avatar
 
Join Date: Jun 2006
Location: Tura
Posts: 1,308
Thanked: 641 Times
Default

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.
lurker is offline   Reply With Quote
Old 20th May 2007, 00:57   #20
BHPian
 
Join Date: Apr 2007
Location: Scottsdale
Posts: 680
Thanked: 6 Times
Default

Quote:
Originally Posted by iraghava View Post
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.
Not necessarily. It all depends on how the aquisition fits into the companies stratergy. Daimler Benz was a big company, technologically more advanced than Chrysler when it aquired it. Chrysler was also a decent company at that time (worth $30+ biillion). Their expectations were different from the merger. Things are different now and if Mahindra or Tata aquire Chrysler it wont be to turn around Chrysler but to gain from its expertise, its dealer network, its brand name and technology. Chrysler would be allowed to wither away but using their tech-know how Mahindra/TATA would gain. Thik Chery's aquisition of MG rover or TATA steel's acquisition of Corus which is a much bigger and technologically advanced comapny compared to TATA Or the recent aqusition of American firms by Indian textile companies.

Last edited by ajmat : 20th May 2007 at 08:10.
Mayavi is offline   Reply With Quote
Old 20th May 2007, 08:13   #21
Team-BHP Support
 
Join Date: Feb 2004
Location: Bangalore
Posts: 11,892
Thanked: 9,729 Times
Default

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.
ajmat is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Fiat & Chrysler in partnership talks! EDIT: Fiat completes Chrysler buyout madan80 The International Automotive Scene 61 30th January 2014 15:43
Kaas on the verge of blooming in September parsh Travelogues 15 12th July 2013 14:10
Ferrari 250 GTO for "Private Treaty" Sale wasif Beyond Borders 10 2nd September 2010 12:32
Chrysler in Deep trouble. Daimler-Chrysler Divorce? GTO The International Automotive Scene 21 5th April 2007 16:28
daimler chrysler muv for sale honda_dude Shifting gears 5 8th July 2006 14:50


All times are GMT +5.5. The time now is 15:53.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks