Mumbai: Cyrus Mistry, sacked as Tata Chairman this week, has said in his explosive email to board members that the group's auto maker Tata Motors has been unable to shut down the loss-making small car Nano due to "emotional reasons."
"Another challenge in shutting down Nano is that it would top the supply of Nano gliders to an entity that makes electric cars and in which Mr Tata has a stake," Mr Mistry has alleged, referring to Ratan Tata, who has taken over as interim Chairman till a replacement is found for Mr Mistry.
Cyrus Mistry, who was chairman for almost four years, has prescribed shutting down Nano - a pet project of Ratan Tata - to effect a turnaround in Tata Motors.
He has called his removal illegal and has alleged interference by Mr Tata during his tenure, highlighting what he said were poor decisions.
However, the Nano faced one setback after another, beginning with Tata Motors having to shift the manufacturing plant of the car from its original site at Singur in West Bengal due to a farmers' agitation led by Mamata Banerjee, now chief minister.
Although the company managed to roll out the car from its new location, initial instances of the car catching fire raised many safety issues. The Nano could never live up to its potential, with Ratan Tata even admitting that Tata Motors had made a mistake by marketing it as the cheapest car.
"Before 2013, in order to shore up sales and market share, Tata Motors Finance extended credit with lax risk assessment. As a result the NPAs mounted to being in excess of Rs 4,000 crore," Mr Mistry wrote.
"Another challenge in shutting down Nano is that it would top the supply of Nano gliders to an entity that makes electric cars and in which Mr Tata has a stake," Mr Mistry has alleged, referring to Ratan Tata, who has taken over as interim Chairman till a replacement is found for Mr Mistry.
Cyrus Mistry, who was chairman for almost four years, has prescribed shutting down Nano - a pet project of Ratan Tata - to effect a turnaround in Tata Motors.
He has called his removal illegal and has alleged interference by Mr Tata during his tenure, highlighting what he said were poor decisions.
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However, the Nano faced one setback after another, beginning with Tata Motors having to shift the manufacturing plant of the car from its original site at Singur in West Bengal due to a farmers' agitation led by Mamata Banerjee, now chief minister.
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Although the company managed to roll out the car from its new location, initial instances of the car catching fire raised many safety issues. The Nano could never live up to its potential, with Ratan Tata even admitting that Tata Motors had made a mistake by marketing it as the cheapest car.
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"Before 2013, in order to shore up sales and market share, Tata Motors Finance extended credit with lax risk assessment. As a result the NPAs mounted to being in excess of Rs 4,000 crore," Mr Mistry wrote.
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