Fueling speculation that the Tata protests last week may have been much more effective than originally reported, India's Tata Motors Ltd has said it will move the upcoming Tata Nano plant from its planned eastern India location if the violent protests don't end. The tension is between the industry that is pushing for the 1,000-acre plant and the farmers who wish to retain the land for agricultural use. After the unveiling of the plant in January, which was hailed by the state's ruling Communists, the protests have been gathering steam. It eventually led to the violent clash last week as more than 1,000 people marched against the planned facility. The announcement from Tata Motors is significant as the company has invested more than 1,500 crore rupees ($350 million) in the project so far, and there is no alternate plan to replace the facility at Singur (although the Nano is going to be manufactured at other plants, as well). In addition, other manufacturers who are expanding into India (including Nissan, Renault, GM, and Hyundai) are watching the unfolding events very closely as they plan their next moves.
Click above for a high-res gallery of the Tata Nano
Raze 1,000-acres of farmland to build an automobile factory, and somebody is going to protest. Even in India. The automaker is Tata, and the protesters numbered at least 1,000 strong as they went head-to-head against police in eastern India yesterday at the future manufacturing site of the Tata Nano (rumored to be the world's cheapest car at just $2,380). The protests are rooted deeper than just "open space" issues. In fact, the real tension is between India's ruling party, and the communist-run government in West Bengal where the plant is to be located. The farmers are unwilling to part with their agricultural livelihood, while the government continues to promote industry. After blocking a highway for a few hours, the stick-wielding protesters were dispersed without injuries. Once again, progress wins out over pastures.
Despite assurances from top GM brass, every bidder for the troubled HUMMER brand appears to be removing itself from the rumormill. Considered one of the strongest suitors interested in the off-road marque, India's Mahindra is the latest brand to pull out of consideration. According to Vice Chairman Anand Mahindra, "There has been a lot of speculation. I want to say categorically we are not pursuing HUMMER." That sounds pretty definitive to us, leaving Tata Motors as the only company from India still reportedly interested. Russian billionaire Oleg Deripaska has pulled his name out of the mix, as has China's Hunan Changfeng Motor Co. Until an official announcement is made, all of this is just speculation, but we have to wonder just how valuable the HUMMER brand could possibly be now that its sales have plummeted so far and so fast.
The Jaguar XF has been a shot of adrenaline for the perpetually struggling leaping cat, as sexy lines and ample performance are adding new customers to the brand. We love the balance of the naturally aspirated V8 and the ample bite of its supercharged sibling, but we'll always be agreeable with the prospect of more power. Spy photos have shown us that an even more vicious feline is on the horizon with a blown 5.0L V8 that cranks out north of 500 ponies.
The folks over at Auto Telegraaf are reporting that the XFR will be unveiled at the Detroit Auto Show next January, which would give Jaguar a big introduction at North America's biggest auto show. We liked what we saw when the XFR made its cloaked debut at the Goodwood Festival of Speed (that graphic on the side should so be an option), and we're looking forward to seeing Tata's most powerful vehicle when it hits Detroit.
The key to Chrysler LLC remaining as one of the Detroit automakers could turn out to be the rest of the world. Reuters reports that Chrysler has been chatting up both Tata Motors and Fiat as a means of survival. A deal with Tata might see the evergreen Jeep Wrangler being proffered in India by Tata, as well as the possibility of an electric vehicle partnership. The EV deal might be centered around an electron-motivated version of Tata's Ace, and those talks are running concurrently with whatever possible Jeep discussions are underway.
A little further west of Tata, in Italy, Fiat is reportedly considering leasing some of Chrysler's manufacturing capacity. A deal that puts business in Chrysler plants would certainly help rustle up some cash, while it would be mutually beneficial for Fiat as it contemplates a return to the North American market. Nobody is commenting officially, but we're likely to continue to see creative deals abound as everyone tries to keep their heads above water.
Remember the first time you moved out of your parents' house? Suddenly you were out on your own, without the security of a financial safety net. Same goes for car companies, so after Jaguar and Land Rover moved out of the Ford house and in with its new roomie Tata, suddenly the pair of British auto marques is searching for a new financial arrangement. And it's found one, thanks to the close relationship between Tata and Fiat.
Through a joint venture with French bank Credit Agricole, the Italian auto giant will be handling the financing of all new Jaguars and Land Rovers purchased across Europe. Fiat may have opted out of buying the two English automakers themselves, but the collaboration with Tata seems to be bringing them closer to Turin with each passing day.
It's lonely at the top. If you've got a big budget to buy a big luxury sedan, you're typically looking at a Bentley Arnage or a Rolls-Royce Phantom (Mercedes tried to make a go of it with Maybach, but never really managed to establish itself outside the Persian Gulf and hip-hop videos). Now Jaguar's new owners at Tata want to take on the establishment with a storied name of its own: Daimler.
Not to be confused with the Mercedes parent company, Daimler has the same roots as the British subsidiary of Gottlieb Daimler's operation. Between 1896 and 1960, Daimler made a range of elegant limousines. After being acquired by Jaguar, the brand was relegated to becoming the top trim level of Jaguar XJ saloons. When Tata bought Jaguar, it also acquired the rights to the Daimler name (which the German company shares under license). Tata is now considering reviving the Daimler brand with a new luxury range, but it'll have quite a job on its hands distinguishing itself in name from the Mercedes parent company and in essence from the known quantities of Rolls-Royce and Bentley.
Click above for a high-res gallery of the Tata Nano.
Tata's diminutive Nano will soon be hitting the market with a standard 30-horsepower, 624cc gas engine mated to a four-speed manual transmission. While that may seem a bit small and underpowered, those looking to spend just $2,500 on a brand new car aren't likely to complain. Plus, the combo is good for 54 US miles per gallon, quite the achievement, we'd say. When it was first introduced, Chairman Ratan Tata indicated that a diesel engine was likely soon after launch, and it seems he wasn't kidding around. Displacing 800 cubic centimeters and equipped with common-rail fuel injection along with a turbocharger, the planned twin cylinder diesel engine has been jointly developed by German powertrain specialists FEV, Bosch and Honeywell. So far, no pricing, horsepower or fuel mileage statistics have been released, but the oil-burner is sure to improve fuel mileage even further and will likely add a bit to the cost of the World's cheapest car.
Fiat and Tata already have a joint venture to distribute commercial vehicles. If they can do the big stuff, why not the little stuff? Tata and Fiat are looking at an agreement to sell the Tata Nano outside of India in markets where Fiat has a strong presence.
If the deal goes through, and once the car is upgraded to meet Western standards, Tata can take advantage of the Fiat name, marketing, and dealer network. Fiat would probably have a big seller on its hands -- and a slice of every one -- since the car is still expected to maintain a healthy price advantage even after it gets beefed up.
The Tata, however, is not expected to come to the U.S. as a Fiat. Ratan Tata said, ""We have held talks about the Nano being marketed in markets where Fiat has already a strong presence." Frankly, America isn't one of those places yet. With Tata making such a big splash over here with Jaguar, they probably wouldn't need Fiat to help the brand. Still, the thought of a Fiat 500 and a Nano snuggling in the corner of a dealership would be too cute to miss. Thanks for the tip, Yash!
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.
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