Tata Motors MD Guenter Butschek writes impassioned letter to employees about the company’s crisis
MUMBAI / New Delhi: Tata Motors CEO Guenter Butschek told employees in a passionate letter that the biggest truck manufacturer in India is in a “crisis situation” and that its collective orientation should be a ” Path of transformation to a recovery ambition. ” ”
Writing to employees this week with what he called “the greatest sense of urgency,” the head of the country’s largest commercial vehicle manufacturer, said the division’s poor performance for immediate corrective action.
“The behavior of the CV business, which is the backbone of our company in terms of profitability and revenue is really worrying, because we have lost market share in all segments,” said in the Butschek note, which resulted in a Reminder to his colleagues that “it’s time to deliver.”
For the autonomous entity, Tata Motors, based in Mumbai, closed the fiscal year with the loss of the south of Rs 2.480 crore. The new exercise has also initiated an “extremely difficult principle,” Butschek said, referring to the behavior of truck muffler business sales that offset the “first green shoots” visible in the car business.
During fiscal year 2010, commercial vehicle volumes, Tata Motors rose only 0.8%.
Compared to this, overall industry growth 4%.
Butschek called this dark growth of the company “not a mark of honor for a leader.”
A part of the Tata Group of 100 billion, the rental company also owns Jaguar and Land Rover brands.
The internal division of Tata Motors is the activity of commercial vehicles whose fortunes are generally linked to business cycles. Ashok Leyland, part of the Hinduja Group, is Tata Motors’ biggest rival in the truck industry in India.
“Tata Motors is going through a recovery phase, focusing on improving profitability through rigorous cost reduction and improved sales, leveraging our superior range of new products,” said a Tata Motors ET spokesperson in the internal communication of The MD.
“Our future product plans are also periodically reviewed, based on dynamic business conditions.” A number of causes, both external and internal, to the inability of the company to join competitors to the feet in the truck industry.
“The fact is that we have failed to read the market correctly, to respond flexibly to changes and offer new products (advanced and blanks) on time.
The biggest deterioration of our performance in recent weeks and the challenges that confirm that we are in crisis, when it comes to the survival of the fittest, “he said.
The company had made a loss provision of Rs 148 million rupees due to the BS III stock at the end of the fourth quarter, and the performance of the dark division CV was also cited as a reason to leave Ravindra Pisharody, Executive Director of the unit .
The focus will now be on the strict control of cost reduction in all categories of costs covering market share and driving CV internal activity volume, zero tolerance on product launch delays and addressing the constraints of The supply to meet the broad demand.