Hindustan Motors reports to BIFR as predicted
Dating back to my post a month before (http://boyracer.blogspot.com/2010/03/woes-at-hindustan-motors.html ) I had mentioned about the problems at Hindustan Motors. Now the situation has only worsened and HM will be reporting to BIFR (Board if Industrial and Financial Reconstruction) about their current financial status. BIFR is similar to chapter 11 in the US from which General Motors and Chrysler are yet to emerge from since last year. LML is operating under BIFR since the last few years now.
The case for LML is different in that the management and workers have the motivation and capacity to innovate (remember the LML graptor??? I absolutely loved the style and the dials were awesome). But at HM bureaucracy and laggard behaviour has not let them past the 50 year old Ambassador and the 10 year old Lancer. LML is coping well with these days being the largest Scooter exports but what will HM do?
I would suggest getting a small car from AUTOVAZ (Lada) which itself is cash strapped and needs money or Proton of Malaysia which is looking to enter India at a cheap price and entering the volume market. Economies of scale will help in a long way but How serious are the top brass at the CK Birla group about saving HM?
For further reading
http://www.moneycontrol.com/news/business/hindustan-motors-what-led-to-networth-erosion_455837.html
The case for LML is different in that the management and workers have the motivation and capacity to innovate (remember the LML graptor??? I absolutely loved the style and the dials were awesome). But at HM bureaucracy and laggard behaviour has not let them past the 50 year old Ambassador and the 10 year old Lancer. LML is coping well with these days being the largest Scooter exports but what will HM do?
I would suggest getting a small car from AUTOVAZ (Lada) which itself is cash strapped and needs money or Proton of Malaysia which is looking to enter India at a cheap price and entering the volume market. Economies of scale will help in a long way but How serious are the top brass at the CK Birla group about saving HM?
For further reading
http://www.moneycontrol.com/news/business/hindustan-motors-what-led-to-networth-erosion_455837.html
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