Daewoo, Isuzu, and Tata Motors
Posted : August 24, 2004 at 11:25 am [IST]
By now, perhaps many in auto industry would have forgotten that HM produced few hundreds Isuzu trucks for Indian market. The vehicles were manufactured in the same plant in Vadodara, rather Halol which later on HM handed over to GM.
In1980s, HM collaborated with Isuzu Motors Ltd, Japan for a technical tie-up for the manufacture of Isuzu trucks. It was done on suggestion from GM. HM was manufacturing Bedford (known later as Hindustan) of Vauxhall UK which again was a GM company at that time. Isuzu Motors were very strong in commercial vehicles and diesel engine technology.
For the project, in 1983, I was shifted to corporate project planning and my interactions with Japanese began. With a number of visits to Isuzu, I learnt the latest trends in manufacturing technology, where Japanese were the best.
Halol plant got built. Production started with CKD. But then very soon Japanese yen hardened. The pricing of the trucks were kept just marginally higher based on the advice of some ex-Tata executives that were hired for the operation. I think Isuzu project could have survived if the pricing would have been good enough to make a marginal profit. Another blow came from the death of the then CEO NK Birla. I still think if he would not have died, the project could have succeeded. TELCO (presently known as Tata Motors) in those days were really scared of the introduction of Isuzu commercial vehicles.
Tata Motors acquired the Korean $231- million Daewoo Commercial Vehicle Company (now Tata-Daewoo Commercial Vehicle Company) for about $100 million. Tata wanted to get into China, but with whatever all it had as commercial vehicles were not going to be acceptable because of their expressway system that requires higher speed. Daewoo makes heavy trucks with payloads of 8 tonnes and above, powered by engines of 350and more horse power, run at 140 kmph even with loads of 12 tonnes. This acquisition will give a unique strength to Tata Motors. It can now enter all big sophisticated market of Europe and China. Tata’s India made upgraded 1-tonne pickups could have a good sale in Korea.
And there is something common between Daewoo and Isuzu. Daewoo was basically a GM dominated company as Isuzu was. All the 600 workers of Daewoo had training in Isuzu Motors. I feel good as I was associated with Isuzu and its technical group for HM’s project. HM could not make Isuzu project a success, but Tata will make it. It is right step for an Indian company to become MNC.
- Indra
Category: Manufacturing |
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