Team-BHP
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https://www.team-bhp.com/forum/)
With the Head of Sales and Marketing - Kia, Manohar Bhat, denying this report, I request the mods to remove this thread as this could unnecessarily spread these false rumours more and also trigger political discussion.
Quote:
Originally Posted by locusjag
(Post 4746082)
Kia had originally wanted to set up shop in Tamil Nadu only. If I remember right, political unrest was brewing in the state at the time that they were scouting for a location. Was it the Sterlite protest or was it the movement against the Salem-Chennai highway? In any case, the overactive extreme fringe elements in TN had scared Kia away...
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The Manargudi Mafia (look them up) had taken full charge with Jaya being Ill and were demanding hefty kick backs.
TN lost a lot of business and FDI in this period
Mods, a suggestion if you please : kindly edit the thread title to something like Denied : Kia moving to TN.
I could not see the edit part in brackets in the title on home page and clicked to see if there is a change in the news. Kia motors and TN govt have both denied the news..
This seems to be some propaganda by vested interests. As the governments of both TN and AP and also KIA denied any such move, it is better to close this thread.
Quote:
Originally Posted by trkauditya
(Post 4746992)
This seems to be some propaganda by vested interests. As the governments of both TN and AP and also KIA denied any such move, it is better to close this thread.
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Exactly. This rumour is reportedly floated by vested interests to discredit current Govt. in AP.
Let me read between the lines. What I think happened is that at some point, the policies of the current AP government might indeed have spooked KIA which lead to them having some secret back-door meetings with TN as an alternative if things go wrong. However, nothing was ever written on paper and I'm guessing that discussions with the AP government after that might have allayed the fears of KIA.
Meanwhile, some journalist who found something about the meetings between KIA and TN decided to break the story as sensationalist while the actual events were much more subdued and possibly no longer in consideration. Such is the case of journalism in our country!
I would not consider the entire episode as rumour mongering just to discredit the current government. As always, there is no smoke without fire.
Either it is news planted by people or companies whose interests might have come under the cross fire between present government and the previous one. Kia may or may not be part this episode.
Anyways, it is better for Kia to scout for other locations for their capacity augmentation.
Relocating their present factory will be dreadful.
Kia sends in an official statement on this:
Quote:
Kia Motors India Statement
Kia Motors India, wholly-owned subsidiary of Kia Motors Corporation and world’s 8th largest automaker, is issuing below mentioned statement with regards to some news stories mentioning about the shift of Kia Motors manufacturing plant out of Anantpur vicinity in Andhra Pradesh.
Statement by: Kia Motors India:
The recent reports about relocation of our manufacturing facility outside of Andhra Pradesh are not true. We are receiving full support from the State Government of Andhra Pradesh under the dynamic leadership of Shri Jagan Mohan Reddy. Kia has a long term commitment to India market and has made an investment of USD 1.1 bn in the manufacturing plant at Anantpur. We will continue to offer world class, made-in-Anantpur vehicles and innovative mobility experience to our valuable customers in India. Request consumers to refrain from reports which do not cover these facts.
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Not saying it is the case here, but many times, the "leak" and eventual clarification are from the manufacturer itself. It's a negotiating tactic.
There could be many takes on this news.
1) The story had actually happened.
2) Kia planted the story to get more leverage from AP govt.
3) Vested interests who want to bring bad name to AP govt in the ongoing 3 capital issue.
Sad that the state will take a long time to recover from all the issues and get a proper capital. AP serves as a lesson on how not to divide a state.
Quote:
Originally Posted by GTO
(Post 4747378)
Not saying it is the case here, but many times, the "leak" and eventual clarification are from the manufacturer itself. It's a negotiating tactic.
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That could be a possibility. Multinationals sound out various states, checking what one offers over the other. Like how we saw in the recent movie Ford vs. Ferrari, where Ferrari sounded out Ford for M&A and after finding out the numbers, they went over to Fiat.
Also, every time a new Govt. comes to power, it reviews concessions and grants accorded to industries by the previous Govt. May be this doesn't happen in Korea so when Kia got the wind of it, they might have panicked and approached TN. Just may be. My assumption.
Quote:
Originally Posted by GTO
(Post 4747378)
It's a negotiating tactic.
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True. They've just started production and wouldn't want to move. But if push comes to shove, would they just move and sell off their plant to another Chinese manufacturer/Citroen?
Quote:
Originally Posted by GTO
(Post 4747378)
Kia sends in an official statement on this:
Not saying it is the case here, but many times, the "leak" and eventual clarification are from the manufacturer itself. It's a negotiating tactic.
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There is something fishy in the KIA Motors' statement - "We are receiving full support from the State Government of Andhra Pradesh
under the dynamic leadership of Shri Jagan Mohan Reddy". They should only be talking about the govt support and not about an individual (Though he is a CM, he is mentioned like an individual - IMHO).
This
"Dynamic" word is one of the most abused word by automotive industry lol:
Quote:
Originally Posted by a4anurag
(Post 4747308)
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From this information, it seems that "75% recruitment of local people" could have been the issue of unhappiness of Kia.
Quote:
Originally Posted by arzala
(Post 4747768)
From this information, it seems that "75% recruitment of local people" could have been the issue of unhappiness of Kia.
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This trend is prevalent in quite a few states. The local labour unions have a strong pull in the government and they seek to ensure that their interests are taken care of, especially with respect to compulsory employment of locals, upto a certain percentage. If the same is not complied with, they threaten to obstruct work at the plant and movement of outside labour. A pretty old arm twisting tactic.
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