M&A the Tata way

ARTICLE: "Tata, Jaguar/Land Rover not such an odd couple: Indian company has been in auto business for 50 years," by Sharon Silke Carty, USA Today, 28 May 2008, p. 1A.

I swear to God I saw a Nano, Tata's new car, in North Carolina last week. I have no idea how it got there, but I swear I saw one.

Even if it was a mirage, the vision was a harbinger—in global terms. Tata aims to produce for the bottom of the pyramid consumers, and all those sales will mean Tata becomes a global car kingpin. And global auto kingpins buy upscale brands to complete their offerings. This happens all the time in consumer goods industries, and it will happen here. It's just that this time, it won't be American companies in the lead, because car manufacturing tends to be driven by rising economic pillars, not mature ones.

So get used to the Tata name. Somewhere down the road it'll be on your car's grill.

Comments

[Jarrod Myrick]

New Core --> New Rules

i've seen a couple of nanos here in ky. they also have an suv that looks like a smaller toyota landcruiser, though not sure its availability in the states. i love the comment by the moronic shareholder activist in the article, who makes cars like that? underestimate the rise of the rest at your own peril.

[Michael]

This part leaped out at me:

"Although the Jaguar deal won't close until June and Nano production begins later this year, Kant already has issued a clear directive: Keep these vehicle lines separate and distinct. "Each is going to chart its own future and own course," he says. "The conflict would come if we were to try to put them together.""

Question is: Can they stick to that? As I recall, GM was started under similar principles, but didn't keep it up.

[michal shapiro]

I suppose the car of the future might have a grill, but hopefully it will be a purely vestigial ornament!

[Stephen Fox]

I think you may have seen a Smart car, which is a Mercedes Benz brand, manufactured in France, and retailed here, in the US, beginning just a few months ago. The Smart and Nano have similar lines at first glimpse.

[large]

The Indians are selling two different brands of Farm Tractors here, and have been for over four years . . as well as several other groups of Farming Equipment, and are quite competitive . .

Importation of automobiles can't be far behind, if there's a market for what they offer . .

[Rick]

What is the big surprise? If the Yugo made it here why not a car from Tata? Markets are markets. Most of us look for more bang for the buck. Now there is a rule set. Cheers!