Autoblog

The Tata Nano exudes frugality, and when you're trying to build a capable vehicle for a paltry $2,500, that's not exactly unexpected. Unfortunately for the Indian automaker, the quickly rising cost of steel may thwart plans to hit the magic price-point. The price of steel has risen by 50 percent in less than a year, and even though the little Nano is only 1,300 lbs, when you're making an econobox on the mega-cheap, every penny counts. Like US automakers have done in the past, Tata is looking to its suppliers to shoulder some of the financial burden. Amazingly, the suppliers are okay with that, provided that Tata does its share.

Even with concessions from suppliers, it's still up in the air as to whether Tata will achieve its lofty target. It appears using a nice round price as a selling point for a vehicle that's a year away wasn't such a good idea after all.

[Source: Automotive News - Sub. Req.]

Ratan Tata, the man and mover behind Tata motors, is doing a Meet the Parents tour with Jaguar's oldest and largest U.S. dealers. As the best businesspeople do, he is flying across the States to meet the men and women in charge of his newest brand. Incredibly, it is the first time he has ever stepped inside a Jaguar dealership.

Ratan has probably gone on the whistle-stop tour not only to get to know his dealers, but so his new partners could get a glimpse of the man they've all been wary of ever since Tata emerged as a front-running buyer for the brand. What were dealers telling him? They want they want a convertible sports car like the F-Type, a convertible XJ, and an even more upscale car to compete with Bentley.

Dealer reaction has been effusive. The head of Jaguar's dealer council -- who said India was no place for Jaguar -- reversed himself after meeting Tata, saying flat out, "I was wrong." And said Norm Aron, owner of a 55-year-old dealership in Illinois, "I'm telling you this: He's going to make something out of Jaguar. We're in good hands now." Score one for Mr. Tata, and please, Ratan, keep it up. Thanks for the tip, Mannix!

[Source: Autoweek]

Still mourning the untimely passing of CEO Geoff Polites, Jaguar and Land Rover have been managed in the interim by chief financial officer David Smith. But as the British automakers transition ownership from Ford to Indian automaker Tata, the twin companies are preparing to name a new chief executive.

Since initially announcing the deal, Tata has reiterated that it wanted to retain as much of the current management as possible. However, many of the jobs that were once managed by Ford and its Premier Auto Group, under which Jaguar and Land Rover fell, will need to be filled. As a result, the automakers are reportedly recruiting externally for several senior positions. Whether Tata ultimately decides to promote from within or hire a new chief executive from outside the company remains to be seen, but an announcement is expected as early as June 2.

[Source: Automotive News Europe – sub. req'd]

It's nothing new to have automakers pushing suppliers to cut their component costs. For the past decade and a half, many companies have demanded suppliers provide price reductions of 3 to 5 percent a year, every year, with varying degrees of success. India's Tata Motors is taking these efforts to a whole new level. In order for Tata to build a new car with a retail price of only $2,500 they need component prices an order of magnitude cheaper than other cars. One example is airbags. While Tata wants the Nano to be a very basic car, it wants it to still meet safety standards. The problem is that frontal airbags cost about $150 each. At that level, a pair of airbags would account for more than 10 percent of the cost of the car, clearly a non-starter. As a result, Tata has asked occupant safety systems supplier Autoliv to develop airbags that cost only $10 each. How or if Autoliv will get down to that price point remains unclear. It seems that features like two-stage airbags and systems that detect the presence of a passenger to disable the bag if there is no one there will have to be left out. In any case, it'll be interesting to see if Autoliv and Tata can pull this one off. Thanks to Asif and Yash for the tip!

[Source: The Economic Times, The Earth Times]

Click on the image above for pictures of the Brutale 910 R

Tata Motors, rumored to have been interested in purchasing a large chunk of Italian motorcycle maker MV Agusta, could have some competition. Another large Indian conglomerate, Mahindra & Mahindra may now be interested in a controlling stake in the storied company. According to India Automotive, the potential exists to gain instant traction in the global motorcycle market by picking up MV Agusta, and the Italian company could use the extra funds from a large and profitable company to release a new line of more competitive machines.

Volkswagen, are you paying attention to all of this? As we've previously reported, the German automaker has expressed interest in purchasing an established motorcycle brand, even going so far as to mention Ducati by name. MV Agusta would offer instant credibility and would be a rather easy entrance into the marketplace.

[Source: India Automotive]

For decades, Ford has carried Jaguar like an 800 lb guerrilla on the company's back. And just as Ford is able to unload the money-burning British marque, the leaping cat responds by posting its first sales increase in two years. Jaguar's April sales were up a ridiculous 69.6% in Europe, and while Automotive News somehow gives credit for this sales success to Tata Motors, it likely has a hell of a lot more to do with the all-new XF sedan. Jaguar has 18,000 customers in line for the new 4-door, which has given sales figures a big lift while helping other Jags leave the dealer lot, too. The slow-selling X-Type and the underrated XJ also got a lift from the extra showroom traffic.

At first glance, it appears Ford's luck just can't change, as Jaguar is finally looking interesting just as the Blue Oval sells it off. What's more likely is that Ford wouldn't have gotten as much cash for the leaping cat if it couldn't dangle a hot-looking sedan to potential suitors.


[Source: Auto News (subs req'd)]

Click above for a high-res gallery of the Tata Nano.

Up until today, there were no major automobile manufacturers taking part in the Progressive Insurance Automotive X Prize. That changes with Tata Motors signing a letter of intent to compete in both the Alternative and Mainstream classes. The Alternative Class allows for the use of fewer than four wheels, though Tata's intention is "to enter a pure e-drive micro car" in that class. The more relevant Mainstream Class requires four wheels, a two-hundred mile range and the equivalent of at least 100 miles per gallon from a package capable of carrying four passengers. For this class, Tata indicates that it will enter a Dominant Electric Hybrid vehicle. We're rather anxious to see what Tata is able to cook up for this eco-friendly competition, considering that whatever engineering goes into the development of its X Prize challengers can easily be applied to the production Nano, as well as Jaguar and Land Rover vehicles.


[Source: AutoblogGreen]

Click above for a high-res gallery of the Tata Nano.

Indian carmaker Tata chose a site in Singur, India for the plant that would make the Nano, the world's cheapest car. Not long afterward, eleven petitions were filed in the Calcutta High Court stating that the purchase of the land for the factory violated the Land Acquisition Act of 1894. It was alleged that the government of Bengal forcibly took "fertile multi-crop agricultural land" from farmers for industrial use, which isn't allowed.

Earlier this year, the Calcutta High Court found in favor of the government of West Bengal (where Singur is) and Tata. Now another petition has been filed with India's Supreme Court over the issue, and the Supreme Court has asked the West Bengal government and Tata to respond.

The issue for the moment is that the Nano is supposed to go on sale in October -- but the next hearing over the land use petition won't be held until July. Some suppose a revised land deal might drive up the price of the car. Regardless, if Tata doesn't work out a production alternative, Tata won't get the head start it was hoping for on what could be a huge market.



[Source: Times of India via Detroit News]

It was rumored that Nissan/Renault was serious about fielding a low-priced competitor to the $2,500 USD Tata Nano, and the automaker made it official today by announcing a plan to produce an equally inexpensive car called the ULC in conjunction with Indian automaker Bajaj Auto. The two companies are forming a joint-venture to produce the ULC, which will be built at an all-new facility in Chakan, India at an initial rate of 400,000 units per year. The Tata Nano has no need for concern just yet, as the ULC isn't scheduled to go on sale until early 2011 in India and then even later in export countries. We're doubtful that the U.S. is among those export considerations, but parts of Europe will likely see the ULC not long after the Nano arrives in their market.

[Source: Nissan/Renault]

The sale of Jaguar and Land Rover to Tata means that the two British marques will have to look elsewhere for the parts normally supplied by Ford. Following the news that Daimler could be a supplier to both automakers comes word from Dr. Z himself that a deal is a distinct possibility.

Daimler holds a seven-percent stake in Tata Motors, which could make an easy case for Mercedes to supply Jag and L.R. with the necessary components to wean them off of Ford. Dieter Zetsche told Auto Motor und Sport that, "If Ratan Tata approaches us regarding the supply of components, we would be open to talks." AMG-powered XF, anyone?

[Source: Auto Motor und Sport via Automotive News – Sub. Req.]