Paper submission for the conference
The Greening of the Global Auto Industry in a Period of Crisis — 9th - 10th - 11th of JUNE 2010 — 18th International Gerpisa Colloquium WZB - Berlin / AutoUni - Wolfsburg
Title Tata Motors and the Financial Crisis – with particular emphasis on the Passenger Car division
Gert Bruche Faculty of Business and Economics Berlin School of Economics and Law (HWR Berlin) Badensche Str. 50-51, D-10825 Berlin Germany Email: firstname.lastname@example.org
Florian Becker-Ritterspach University of Groningen Faculty of Economics & Business Department of International Business & Management PO Box 800, 9700 AV Groningen The Netherlands Email: email@example.com
Tata Motors and the Financial Crisis – with particular emphasis on the passenger car division
As the global financial crises wreaked havoc on major Western automobile companies, particularly in the United States, Tata Motors, the biggest Indian automobile manufacturer seems to have weathered the storm albeit with some dents so far. In this paper we explore how the global financial crisis has affected Tata Motors and how the company responded to the crisis strategically. While we focus on the passenger car division, we will also discuss to some degree the commercial vehicle side, because the effect of the financial crisis on Tata Motors (TM) cannot be fully understood without it. Based on Boyer and Freyssenet’s (2003) definition of productive models the focus will be on changes in the productive model (constituted by the interplay of profit strategy, product policy, production organization and employee relations) in relation to key contextual changes in the company’s external environment (liberalization, market conditions, financial crisis) before and after the global financial crisis. A major conclusion of our analysis is that given Tata motors embeddedness in the Tata conglomerate given the remaining importance of the Indian market, the company was...