[Deep Blue]

What took it so long? HM would be a ideal case study on how not to run a company in the management colleges. Quality, Innovation, Change were all non existent in this company.

[cruiser@0523]

I just hope Tata motors take over HM quickly and get things moving. Launch an all new yet retro looking Amby, launch the new Lancer, and the Evo.

[Nitrous Power]

This was expected sooner or later. After Licence Raj, PAL and HM should have been innovative, but they resisted to change according to customers demand. don't know how restructuring will help to the company when they are not ready to react upon the market needs.

[GTO]

^^ Funny thing is, both - PAL & HM - tied up with worthy partners who had a very relevant product range for India. Pal had Peugeot & Fiat, while HM had Mitsubishi. Sadly, they cut the branch that they were sitting on with silly business practices.

[lifeonwheels]

So what do you guys think this couold mean for existing Mitsubishi owners and those who are about to buy a Mitsubishi car shortly? Could this scenario translate into shrtage of spares in a year or so or any other service related problems?

[atrisarkar]

Couple of months back I found this article in Business India titled "Hindustan Motors' Struggle for Survival: Troubled Waters?" Here.
This article itself is more than 10 years old since then things have been going downhill all the more steeper. If we want to summarize, the single-most major reason for the downfall was the Licence Raj hangover. Influx of foreign player and MUL's meteoric rise was no excuse for the management to sit back and pass the buck on others.
Another point to note is that HM didn't have a captain of caliber who could have driven the ship forward like Ratan Tata or Anand Mahindra. All they had was a bureaucratic management and powerful trade unions.

[diffsoft]

Originally Posted by atrisarkar

Another point to note is that HM didn't have a captain of caliber who could have driven the ship forward like Ratan Tata or Anand Mahindra. All they had was a bureaucratic management and powerful trade unions.

Yeah and and I guess being HQed in Kolkata had its own drawbacks. It's ironical to note that that HM is sinking in one of the fastest growing industry in India.

[lifeonwheels]

Originally Posted by diffsoft

Yeah and and I guess being HQed in Kolkata had its own drawbacks. It's ironical to note that that HM is sinking in one of the fastest growing industry in India.

I second that. Operating a pritable business from a communist-riled place in a democracy is very very hard. Communism makes sure that the companies are never competent or innovative. Have you ever heard of any Russian or Chinese automotive companies coming out with ecen a small innovation for cars? Any company from a communist country which ranks among top 3 in its field (barring defece companies for obvious rasons)? Same for HM. They just didn't know what to do in order to be competitive with people who could think and implement rather than just drinking tea whole day and smoking bidis

[nickatnite]

[quote=atrisarkar;1874555]Couple of months back I found this article in Business India titled "Hindustan Motors' Struggle for Survival: Troubled Waters?" Here.
This article itself is more than 10 years old since then things have been going downhill all the more steeper. If we want to summarize, the single-most major reason for the downfall was the Licence Raj hangover. Influx of foreign player and MUL's meteoric rise was no excuse for the management to sit back and pass the buck on others.
Another point to note is that HM didn't have a captain of caliber who could have driven the ship forward like Ratan Tata or Anand Mahindra. All they had was a bureaucratic management and powerful trade unions.[/quote]

Your last statement is so true. There's a large contingent of corporate hangers-on from the earlier licence raj that have continued to cling on to their positions making sure they feather their own nests at the cost of the company they choose to infest. Many are in league with the trade unions and shady businessmen too. This nexus continues even in this day and age especially in companies where the owner/operators are not involved in the day to day activities of the companies. They ultimately drive these companies into receivership after stripping them bare in connivance with corrupt officials and greedy accountants. All, 'alledgedly', ofcourse.

[KMT]

Yes it is sad to see these 'icons' go under.
Brands we grew up grew up with such as yezdi, rajdoot, lambretta, Fiat, Amby, Standard Hearald etc are all wiped out.
These guys had such a headstart with their dealer networks and manufacturing plants, they could have really crushed the competition if they had the corporate will/ability.
I think most were run as 'old school' family businesses and the people who inherited the companies from their fathers/grandfathers had got so used to having an easy ride in life they did not have the calibre to keep up with the changes.

[SkyWalker]

Happy to see it go down. HM was ridiculously outdated for more than a decade now. I hope Mitsu start doing something on its own now!

[musicmanaman]

I think HM is a great takeover target now, companies like TATA can consider taking over HM and turning things around.

[iron]

Hey..
Check this out,
The Hindu Business Line : Hindustan Motors will seek BIFR cover as net worth erodes substantially

its almost on the verge of bankruptcy..

An enthusiast has also drawn up plans for its restructuring..
Boyracer's Showroom: Woes at Hindustan Motors

IS HM LISTENING ??

[GTO]

HM just reported a loss of 20 odd crores for Q2 this year. Things are looking really bad, and the management doesn't seem to be doing anything about it!!

[mav2000]

Well, this is one of the issues faced by old companies un willing to change with the times. Its in a sorry state of affairs, even though they have a partnership with one of the well known auto manufacturers.