[Stu]

Why abandon the TATA relationship?

Simple. How would you feel if you gave someone £1.5 billion to be your partner and then they decided to jump into bed with a previous 'love interest'? :err:

John

But I doubt MGR would sell any Tata rebranded car outside of Europe, so that shouldn't really be a concern to SAIC.

 

[JohnSwitzer]

But I doubt MGR would sell any Tata rebranded car outside of Europe, so that shouldn't really be a concern to SAIC.

Okay, how wouldyou feel if you gave £1.5 billion for someone to be your partner and then while you're away during the week, they jump into bed with someone at weekends?

I do take the point, but if SAIC are funding the acquisition of the GMD plant in Poland as has been reported, then SAIC would have a definite interest in Europe.

John

 

[Stu]

I suppose it depends on what is to be made in Poland and whether it competes with models sourced from Tata.

Do SAIC have any interest in a car like the CityRover?

If they do the midget, then from what I have been told about the Chinese market this would not be a seller there either.

I can see both sides of the aruement mind, so I guess it's wait and see.

 

[AndyhMG]

I think Tata will be around for a while yet, they have a lot to lose as well as MG in the short term, in the Long term, well it depends on whether SAIC take full control of MGR or not.....

 

[MGCrazeee]

Didn't Tata and/or MGR advertise for engineers and purchasing guys to work in India at Tata's factory and it stated in the advert that they would be specifically working on the RD/X60 project?

If SAIC's agreement allows it, perhaps MGR and/or SAIC will give Tata a license to manufacture a version of RD/X60 in India for the Indian market. I think I am right in saying India's complicated import protocol and high import taxes would prohibit the importing of MGR's that are manufactured in China? It would mean SAIC and MGR would receive a slice of money on every RD/X60 manufactured in India by Tata.

 

[Amos Quito]

About 10 days ago,I read on an Indian financial web site that Tata had
started production of the new updated version of the CR for the uk.
Sorry I can't remember the web address now.

 

[Amos Quito]

Found it!
www.businessworldindia.com/oct0404/news10.asp
Makes interesting reading I think.

 

[AnthonyG]

What happens to Tata?

Quite frankly, who cares? The CR has been a commercial failure in the UK, all that is left is to sell a handful for another couple of years and then quietly drop it.

I doubt Tata and SAIC would want to be involved with each other even though MGR.
India and China are eyeing each other up as rivals to be the most important new player in the world economy and there is no love lost between them. Plus, the way I see it, with the VW, GM, and now MGR links, SAIC are where Tata would like to be.

 

[king arthur]

I think it would be a BIG mistake to abandon the Indian market. Tata still needs more models to compete in its home market, let's hope they are still talking to MG-R about working on this together.

 

[Guest]

Yeah, the box and to be honest, the engine are pretty naff. The power of the engine isn't bad, its just so unrefined. If some people say the K series is unrefined (which I don't agree with), I wonder what they'd call the tata engine then!

well, if you create a petrol engine from a 1980s diesel I suppose that this is what you get! Bet it has a tougher head gasket nthan the K series, though!

 

[Tim Thorpe]

I hope the collaboration continues;being completely dependent on SAIC is too risky!In any case surely there are opportunities for new model development with Tata that would not be of interest to SAIC? I do hope that we will see not only a much improved 2005 Cityrover but also the Tourer,MPV and Midget and that Tata would in return take RD60 under licence.

 

[SteveChilds]

well, if you create a petrol engine from a 1980s diesel I suppose that this is what you get! Bet it has a tougher head gasket nthan the K series, though!

Probably is, but then it would need to be

 

[boxwellm]

There is another thought going through my head. This new design company that is to be set up by SAIC and MG-Rover... will they be building designs exclusively for MG-Rover and SAIC, or will they undertake development consultancy for other companies?

After all, TATA don't have a medium sized car, do they?

 

[xerif]

Tata and SAIC both want to be major players. It would suit both to develop cars together and after the CR fiasco they both need a European partner.

A Tata/Saic/MGR: why not? Guarantee it has been considered...

 

[andy]

Tata and SAIC both want to be major players. It would suit both to develop cars together and after the CR fiasco they both need a European partner.

A Tata/Saic/MGR: why not? Guarantee it has been considered...

Tata/SAIC? No no no no no...
There is a Chinese saying "One hill cannot hide two tigers", they are both very big companies with great ambitions and wouldn't work harmoniously as one.

 

[MGROVERnut]

Tata/SAIC? No no no no no...
There is a Chinese saying "One hill cannot hide two tigers", they are both very big companies with great ambitions and wouldn't work harmoniously as one.

I know what you mean, but in worldwide sales terms they are minnows. Both companies need to expand quickly as Asia is booming and they can't survive as low wage economies forever. Furthermore India and China hardly enjoy the best of relations. Working in partnership is perhaps a better arrangement for both TATA and SAIC. SAIC have demonstrated that they like alliances and mergers. The question mark really lies in whether or not TATA is prepared to sell MGR cars? If it is then they could make MGR cars under license and tap into all their technology.

 

[king arthur]

I know what you mean, but in worldwide sales terms they are minnows. Both companies need to expand quickly as Asia is booming and they can't survive as low wage economies forever. Furthermore India and China hardly enjoy the best of relations. Working in partnership is perhaps a better arrangement for both TATA and SAIC. SAIC have demonstrated that they like alliances and mergers. The question mark really lies in whether or not TATA is prepared to sell MGR cars? If it is then they could make MGR cars under license and tap into all their technology.

No, SAIC has demonstrated not that it likes alliances and mergers, but takeovers. It has taken a controlling interest in Ssangyong. It is also considering listing on the NYSE to raise another $1bn for more acquisitions. Who else there is left for it to buy remains to be seen.

 

[MGROVERnut]

No, SAIC has demonstrated not that it likes alliances and mergers, but takeovers. It has taken a controlling interest in Ssangyong. It is also considering listing on the NYSE to raise another $1bn for more acquisitions. Who else there is left for it to buy remains to be seen.

KA they don't own GM or VW do they?????

I know what you mean, but if SAIC and MGR want to go for the Indian market (population 1 billion!), then they may need to do this with an alliance. They could build their own plant there, but this could get expensive. On the other hand TATA could make life simple. It depends on how flexible both TATA and SAIC can be. I would suggest that TATA need MGR's help badly, and would be flexible.

 

[king arthur]

Possibly. Tata wants to get into the Chinese market, too, so it's not unthinkable.