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Violence could prompt Nano plant move, says Tata

 
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Violence could prompt Nano plant move, says Tata

Violence could prompt Nano plant move, says Tata

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Protests that have grown increasingly violent at Tata Motors' planned Singur, West Bengal Nano production site could force the carmaker to leave the area and find another location for its upcoming people's car. With $350 million already invested into the operation, however, it won't be a cheap decision.

The protests are in reaction to Tata Motors' purchase of farmland to build the plant. Along with rapidly rising materials costs, the protests have caused delays and price rises that are making the Nano's launch a difficult and possibly lengthy process, reports Automotive News. Choosing to move the plan would be grounded in human, rather than financial, concerns, however.

"What has concerned us is the violence, the disruptions, that has led us to be concerned about the safety of our employees, our equipment and investment, and of the viability of the process," said Tata Group Chairman Ratan Tata.

The decision to scrap its plant and move is a tough one, but may in the end prove less costly than continuing on in a community where the company is not wanted. As yet, however, there is no 'plan B' for production of the Nano. Eventually more plants are planned join the initial location at Singur, but production was expected to start there at about 250,000 units annually before adding more capacity.



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Comments (6)

  1. By Thomas Russell Posted: 8/23/2008 5:00am PDT

    Why would Tata build a factory on farmland that crops could be grown on in order to feed the large population in that region ? I mean it is tactically stupid for Tata to do that.
     
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  2. By Craig S Posted: 8/23/2008 10:42am PDT

    Thomas, its all about the mighty buck!! This time it seemed to have back fired though.
     
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  3. By NoNameDenton Posted: 8/23/2008 10:18pm PDT

    Well, I hope the Tata is not produced, it will increase the demand for oil in India if more people are driving, thus depriving the rest of us of that oil.
     
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  4. By tackle box Posted: 8/24/2008 4:07pm PDT

    Well, I agree. Tata needs to take a hike and sell Jag and Range Rover back to the Europeans.
     
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  5. By Edward Posted: 8/25/2008 10:17am PDT

    Tata is not the great businessman he was made out to be. From tea to high end autos is not an easy thing. From his asking for funds now to buy Jag LR, apparently Tata is having second thoughts. And when he decides not to buy Jag Lr due to the deepening world wide economic crisis, who is going to get the jag?
     
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  6. By absi Posted: 8/26/2008 12:19am PDT

    its funny how most of the comments here are not related to Tata Nano but more so with the demand for Oil and the aquisition of LR and Jag.

    Well if the Europeans were soo good at business then how come Jag and LR were sold to Ford??

    Is your frustration related to the fact that a 3rd World Country Business now owns LR and Jag and your ego is hurt?

    If Tata decides to sell LR and Jag at any stage - then it will be a business decision, he is a businessman. Tata is not Charity and so please dont expect it to function like that.

    I see a lot written about Tata over the internet, but how abt improving the fuel efficiency of your American cars - so that, as you put it, wont be "deprived of oil".

    Car companies across the world are facing tough times, Australian Ford and Holden are sacking staff, closing down plants. Mitsubishi Australia shut down its plant earlier this year, thus ceasing any production activities in Australia.

    GM and Ford in the US are consistently posting losses that could easily cover IMF debts of a 3rd world country... but not much is being said about their business operations and poor choices.
     
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